INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER - 2013

TEAM INSIGHTS

INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER - 2013

http://insightsonindia.com
http://insightsonindia.com Page 1

INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER - 2013

FOREWORD

Insights wanted to bring out professional Magazine containing insightful articles on current affairs. But mounting pressure to release a ‘promised’ magazine has forced us to publish a ‘compendium’ instead of a real magazine. The lesson we leanrt is: Never Promise. We wonder how politicians manage to escape in spite of making innumerable promises to the public throughout their career! This publication contains deep analysis of articles that appeared in The Hindu in the month of October 2013. There is also an analysis of articles from other newspapers. We are immensely thankful to The Hindu. The purpose of the document is to disseminate knowledge for free to the rural students who do not have access to The Hindu or other costly magazines. This magazine has no commercial interest and is purely academic. We hope this collection of current events and their analysis would help the aspirants in their exam preparation, especially the ones staying in remote corners of the country. We wish to give this magazine free of cost to the loyal followers of INSIGHTS website.

The rest of the issues. The meeting.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . was organised to firm up the agenda for the meeting. and their specific developmental needs among others. However. That is. Funding issue dominates Warsaw climate meet The Warsaw (Poland) meet (2013 annual climate talks). called the pre-COP (Conference of Parties). starting 11th November. the countries that are nearing or almost at the same levels of developed countries would most likely take a different stand compared to the countries which have a very low per capita emission levels. A large area of disagreement persisted over how the targets of emission reductions will be reviewed for being adequate to match up to the globally set requirement. at the Durban conference of the U.N. such as finance. India and other developing countries have demanded that developed countries should not count private investments against the commitment of $ 100 billion annual fund for fighting climate change. Several countries expressed apprehensions about the difficulty of enhancing the volunteered emission reduction targets that were once approved by respective governments. which has the backing of the U. India. another legal instrument or an agreed outcome with a legal force’. Disagreements were also expressed by the developing countries. The group meets 4 times a year. Also called the “hub and spoke” model in climate jargon. adaptation and technology transfer. The developed countries had promised to solicit an annual stream of 100 billion starting 2020. Developed nations silent on funding The recently concluded meeting of EU Finance Ministers failed to agree on putting any figure on the table at the Warsaw meet. It helps the host country and other key countries informally delineate areas of differences and agreements that could lead to some concrete decisions at the main meeting. The next BASIC meet will be held in China. They sought clarity on how the developed countries would put up the promised $ 100 billion fund. to be signed by 2015 and made operational from 2020. Henceforth. this issue has received support from the developed countries as it requires them to acknowledge a historical responsibility for past emissions. The BASIC group was formed in 2009.2013
INTERNATIONAL CLIMATE CHANGE NEGOTIATIONS South Africa (SA) calls for legally binding protocol on climate change On contrary to the united stand taken by the BASIC (Brazil. which is starting form November 11. once in each of the BASIC countries by rotation.S. 2013. was held from 2nd – 4th October. South Africa. The differences among the BASIC group and other emerging economies are also based on the current emission levels. The 14th meeting of BASIC group was held in February in India to discuss climate change related issues and also on further steps to be taken on Doha Climate change conference. 2013 must draw up a clear time line against which the new global agreement will be drafted and finalized. since the nature of commitments that countries are forced to take upon under the new regime are presumed beforehand. The issue of “loss and damage” also found common support from the developing countries at the meet.
http://insightsonindia. This legally binding protocol would also subsume the Kyoto Protocol in the post-2020 regime. China). climate change. it has been suggested. against the idea of a ‘thin agreement’ in 2015. Demands from the developing countries: At the meet. Framework Convention on Climate Change in 2010. it was decided that the legal form of the new agreement would not be decided until the content of the new deal was well known. But poorer countries have been demanding a clear road map of how the developed countries will increase their funding support. can be dealt with later under legally less demanding decisions of the COP. The nature of commitments from different countries would be based on equity and the principle of “common but different responsibilities” as well as respective capabilities. including India. The poorer countries have demanded that there must be a mechanism to compensate the countries that will suffer from global warming that are bound to occur from emissions that had triggered changes in the climate. the BASIC group had decided to keep the options open on the legal form of the new agreement which would be in the lines of ‘a protocol.com
Page 9
. commitments and actions for all parties. Importance of the BASIC group The BASIC group not only represents their own concerns but also provides voice to the developing countries on issues of equity. 2013. The new agreement would require countries to volunteer targets for emission reduction that will then be assessed for their ‘adequacy’ in matching up to cumulative emission reduction required to keep global temperatures from below 2 degrees beyond the pre-industrial era. Earlier. The meeting also saw countries conclude that the COP.N demanding that the new agreement on climate change to be in the form of a protocol with targets. where all member-countries of the UN Framework Convention on Climate Change (UNFCCC) gather. This could be premature. SA has submitted a report to U. it suggests that only the targets of reducing emissions should form part of the main agreement in 2015. What is the main concern? The main concern was how one could decide on the legal form before knowing the content of the agreement.

finance and technology” should be addressed among a less cumbersome set of decisions at the annual negotiations of the convention.S demands? Outlining its demands for the new climate change agreement to be signed in 2015. The U. It instead focused on private investments and removing barriers in the developing world to such investments. had overlooked the call for committing midterm figures at Warsaw. What are the U. This has not been agreed to at the U. above which would lead to dangerous climate change consequences.S too has been criticized on the same lines. Many developing country groupings. does not want the new global climate agreement (global climate pact. It is less than one-third of the emission cuts the rich countries have achieved between 1990 and 2011. has also stressed on a single transparency regime for all countries instead of a different one for developing countries and another for developed ones. too.2013 The U. The EU is also pro private investments though it does not undermine the ‘important role’ of public funds. Whereas the Least developed countries (LDCs) or the poorest countries have demanded that they be compensated for the damage from the global warming caused by the existing accumulated emissions that any level of mitigation or adaptation would be unable to prevent. has said that the pact would concentrate only on the “core provisions” – on mitigation and transparency.S is calling for a ‘voluntary commitment’.S. And it is also difficult to ascertain whether the reduction emissions committed by the developed countries would be actually achieved since many of these countries have not explained or clarified their dependence on offsets (i. which will put in place a formula for all to cut emissions from 2020. have put forth the view to make mid-term commitments and also to bring transparency to the figures they claim to have spent so far. at a meeting of about 40 countries organised in Poland.private investments in climate financing. on the other hand. has made it clear that it will not increase its target to cut carbon dioxide emissions in the pre-2020 period.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .e. This falls far short of the 25-40% reduction expected of the developed countries so as to keep temperatures from rising more than two degrees above the pre-industrial era. The participation will be maximised only if each country must put forth ‘emission-reduction’ commitment it deems fair and fitting to its circumstances. By 2011.S. and other developed countries stands bleak.S. negotiations so far. Earlier in this year (September. Also the fiscal reality of the U. The meeting was organised in the run-up to the official November talks. as it would dent the ambition of commitments and limit participation by countries..N. What is the issue between the Developed & the Developing countries? The developed countries had committed to provide a ‘fast-start fund’ of $30 billion to poorer countries between 2010 and 2012 and then $100 billion annually starting 2020. it would be unrealistic for rich countries to increase financing for fight against climate change. it had already achieved 18% cut from its promised 20% emission cut below the 1990 levels. is pro. which has the highest accumulated emissions and the highest per capita emissions in the world. The developing countries have been demanding that these countries put forward a road map for scaling up finance between 2013 and 2020. increased emissions by 8% between 1990 and 2011 because it refused to sign the Kyoto Protocol. 2013) the EU had suggested to the U. The issue of financial commitments for the short term was last raised by many developing countries. Now it has committed to cut emissions by 5% from the 1990 levels by 2020. Developed countries pledge only meager emission cuts till 2020 According to the U. infrastructure. against raising emission reduction targets in 2015 pact The United States has strongly recommended the UN Framework Convention on Climate Change (UNFCCC) to ensure that voluntary emission reduction targets would not be reviewed in case public consultations showed that they cumulatively fell short of maintaining the global target temperature of below 2 degrees Celsius.S. The EU (which has always projected itself as a leader on the issue) has set such a low target for 2020 that it has almost achieved it. the low commitments of these countries would push the developing countries to commit to a higher level of reduction post-2020. That means U. 2015) to have “rigid rules” or penalties for countries that do not meet their greenhouse gas emission reduction targets. including the BASIC. The U.
2)
While the U. Instead the U. U. Existing overseas development assistance (or ODA commitments) has been recycled as climate ‘change finance. The UNFCCC analysis shows that. Framework on Convention on Climate Change (UNFCCC). education.S. the developed countries have committed to cut greenhouse gas emissions by a meagre 3% from 2011 to 2020. Framework Convention on Climate Change (UNFCCC) that the emerging economies too should contribute to the $100-billion fund. the U. the countries have collectively committed themselves to a reduction of only 13-19 % by the 1990 levels.S. Whereas the other key elements of climate talks — “adaptation. With the carbon space being limited and almost two-thirds occupied by the developed countries.S. Apart from the recent financial crisis there are other obligations that it has to cater to like the aging population.S. buying credits for work done to cut emissions in the developing world) The UNFCCC negotiations had two agenda: 1) to persuade the countries to make higher emission cuts between 2013 and 2020 so as to prevent the atmosphere from accumulating higher levels of emissions.S. The U.com
Page 10
. According to U.N.N.’ The U.S. What is Kyoto protocol?
http://insightsonindia. health care. to come up with a new deal by 2015. including India. the EU has made it conditional on countries such as China and India to make commitments immediately.

S. the Doha Amendment to the Kyoto Protocol was adopted.UNFCC website India’s stance on Montreal Protocol At the ongoing meeting of the multilateral agreement in Bangkok – Sticking to its (India) stand on not allowing phase-out of climate changing refrigerant gases. 50 lakh tonnes of wheat and 25 lakh tonnes of sugar this year. India’s stand: With higher production of foodgrains. Overall.N. halons).” KP sets binding emission reduction targets for 37 industrialized countries and the European community in its first commitment period. the Protocol places a heavier burden on developed nations under the principle of “common but differentiated responsibilities. India has asserted that hydro fluorocarbons (HFCs) must be dealt within UNFCCC talks. The detailed rules for the implementation of the Protocol were adopted at COP 7 in Marrakesh. Morocco.com As the protocol works by consensus. has demanded that India should agree to set up a ‘contact group’ on HFCs in the Montreal Protocol.). 2013). on 11 December 1997 and entered into force on 16 February 2005. Brazil and some allies blocking the long-standing proposal to amend the Montreal Protocol. Recognizing that developed countries are principally responsible for the current high levels of GHG emissions in the atmosphere as a result of more than 150 years of industrial activity. its industry would be pushed to buy proprietary technology from companies in the U. these targets add up to an average five per cent emissions reduction compared to 1990 levels over the five-year period 2008 to 2012 (the first commitment period). Framework Convention on Climate Change (UNFCCC). UNIVERSAL RATIFICATION On 16th September 2009. and elsewhere at a very high cost to make the transition without adequate financial support. India has made it clear that the procurement of foodgrains and distribution under the new Food Security Act will not be higher than the ongoing public distribution system (PDS). the Vienna Convention (for protection of the ozone layer) and the Montreal Protocol became the first treaties in the history of the United Nations to achieve universal ratification. indicating that it will not contribute to international price distortions. in 2001. Why is the issue being raised at the global fora? Ever since the Food Security Act has been passed in India. Canada fear that procuring the food grains at a minimum support price (MSP) from farmers and selling at subsidised rates to 67% population will distort international trade. India’s stance was equally supported by China.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . freons. which would effectively begin the process of dealing with the gases out of the U. The treaty is structured around several groups of halogenated hydrocarbons that have been shown to play a role in ozone depletion. In Doha. The U. Qatar. India had contributed to world trade by exporting 100 lakh tonnes of rice. U. Japan. This issue will be discussed at the WTO’s meet in Bali (December. The original Montreal Protocol was agreed on 16 September 1987 and entered into force on 1 January 1989. and thereby protect the earth’s fragile ozone Layer. there would be no further progress on this issue and India would not change its present stance. Courtesy – UNEP website & Wikipedia FOOD SECURITY – INDIA. each country’s consent is mandatory to pass such a proposal. What is Montreal Protocol? The Montreal Protocol on Substances that Deplete the Ozone Layer was designed to reduce the production and consumption of ozone depleting substances in order to reduce their abundance in the atmosphere. and not under Montreal Protocol. This launched a second commitment period. but the most important process in both is catalytic destruction of ozone by atomic halogens. India has enough foodgrains till 2014 for internal consumption as well as to provide to countries that need foodgrains. some of the World Trade Organisation (WTO) countries have started raising questions on the huge stocks that the country is holding to provide subsidised foodgrains under the new law. Pakistan.” Its first commitment period started in 2008 and ended in 2012. Since Montreal Protocol is meant to deal only with ozone-depleting gases. All of these ozone depleting substances contain either chlorine or bromine (substances containing only fluorine do not harm the ozone layer).2013 The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change. India retaliated that. which would indirectly open the forum to talks on HFCs within the Protocol. unless there is clarity on the costs and technological changes involved at the bilateral task force (between India & U. The main source of these halogen atoms in the stratosphere is photo dissociation of man-made halocarbon refrigerants (CFCs. There are apprehensions from the Indian side that. the HFCs are handled and developed countries are required to cover the full costs for technology transitions under UNFCCC.. At the Bangkok meet. on 8 December 2012. Courtesy. http://insightsonindia. The details of polar ozone hole formation differ from that of mid-latitude thinning. WTO & THE WORLD India’s Food Security Act and its global implications In the recent Food and Agriculture Organisation (FAO) meet on World Food Security in Rome. including one from the European Union.S. which commits its Parties by setting internationally binding emission reduction targets. and are referred to as the “Marrakesh Accords.S. permitting it to deal with HFCs. The Kyoto Protocol was adopted in Kyoto. Currently. India also blocked other proposals. starting on 1 January 2013 until 2020. Hence the fear does not hold water!!
Page 11
.S.

has called for full inflation allowance which will help the government procure grain from farmers. The subsidy limit were pegged at 1986 global prices. Developed countries perspective: However. therefore. At present. which has had over 500 per cent inflation (compounded) since 1988. the U. This would mean Indian would exceed the 10% subsidy limit as proposed under AoA. These stockpiles are not for trading or finding a market elsewhere but to feed the country’s poor. Some developing countries. With the implementation of the Food security Bill. Through G-33. but this would be in violation of AoA which India opposes. the procurement would rise to 70 million to feed 67% of India’s population. The stockholding proposal was submitted by G-33 last November. Pakistan too delivers subsidised food through direct cash transfer. India is cautious over the ‘acceptability of the peace clause’ as this may violate AoA. Indonesia has shown keen interest in India’s Food Security legislation and wants to step up coordination with India in the WTO on the contentious issue of stockpiling food reserves. to meet the buffer stocks needs of the country which comes upto around 65lakh crore. FAO was eager to help India publicise the legislation and raise its voice in the international arena. This would mean.com
Page 12
. A lot of comparisons can be made from the Brazil’s programs w. Summary Link between India’s Food Security Act and WTO At present India is procuring around 35-40 million tonnes of foodgrains annually. both are trying to lift the limit on subsidised food stockpiling to support poor farmers. which may call for legal action by the developed countries on India. India is the largest public procurer of grain and next comes Indonesia which has a strong food procurement policy. India and Indonesia are already part of the G-33 coalition of developing countries within WTO for flexibility to undertake limited market opening in agriculture. What is the issue all about? From the Developing countries perspective: As per the proposal.
http://insightsonindia.4 of the AoA mentions that developing economies shall receive “due allowance for inflation” in determining procurement prices.2013 The Food Security Act is a shift from a welfare-based to a rightsbased approach in providing food security to the poor and protecting human dignity.S) have proposed a “peace clause” by which India can exceed the subsidy limit for only 3 years. India holds ground on the G-33 plan to pay farmers inflationlinked price The government is going to place a fresh G-33 proposal before the parliament seeking to enable developing economies to meet the challenges of food security for their large populations. There is also a G-33 proposal to allow developing countries having food security laws or public distribution systems in place to use public funds to procure foodgrains. The group feels stockholding programmes are the best way to ensure food security for its populations. but in the current scenario (with inflation and growing population). the WTO meet at Bali meet is critical because its food security law will involve procuring over 60 million tonnes of foodgrains to feed 70 % of the population. are demanding that this limit be raised. wants to stand its ground and push for the G-33 proposal seeking full allowance for excess inflation. India also backs the G-33 proposal that wants subsidies. Indonesia is also keen on India’s Food Security law At the delegation-level talks between India and Indonesia “Food Security” appeared to be the top priority. the reference price (or the base price) for procurement is linked to what was decided in 1986-88 when the Agreement on Agriculture (AoA) was negotiated under the World Trade Organisation. Safeguard provisions (in the WTO agreement) for developing countries: The Agreement on Agriculture (AoA) allows “market distorting subsidies” up to a limit of 10 per cent of the total production. However the developed countries (especially the U. But as per the AOA . The proposal of the G33 countries is in line with India’s position but the West will resist this change. They also stressed on the need to maintain stability of food prices and safeguard the food market from price distortions. women empowerment and reforms of the public distribution system. India will have to spend around 1.the total procurement Price that a country can provide cannot exceed 10% of the total value of production.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . It is said that.t India’s programs say – Brazil’s Zero Hunger programmes. Clause 18. this is also in accordance to the provisions of Indian constitution. that is to be discussed at the December(2013) WTO meet in Bali. For India. developing nations must be allowed to consider higher inflation rate occurring in their economies to justify higher procurement prices offered to farmers.25Lakh Crore on procurement. It. including India. Both countries have acknowledged that neither of them can import food and have agreed that the issue of food security should be met bilaterally. which are a part of the procurement of foodgrains for public stockholding for poor and marginal farmers.r. Hence India is arguing for full allowance for excess inflation so that the procuring price will not exceed 10% limit and also to remove the limits on public stockholding and food aid so that India can goahead with its procurement. not to be regarded as a prohibited subsidy by the WTO. India.S and the EU are of the view that the AoA does not commit full allowance for inflation and have proposed a “peace clause” which would defer this matter by three years during which period the developing countries can continue to procure grain as they are doing now even if it is violative of the AoA. the subsidy would exceed the limit.

The G33 has proposed special rules for developing countries at WTO negotiations. but the key here was the ability to manage them. healthy lives.com/article/economy-policy/foodsecurity-law-s-wto-complication-113080300501_1. Indonesia. improve agricultural productivity. It must be noted that developing countries would be allowed to retain their subsidies that cause ‘minimal trade distortion’ in order to deliver various public policy objectives. The Aim of AoA was to reduce trade-distorting subsidies. G 33 Group: The G33 is a group of developing countries that coordinate on trade and economic issues. Himachal) and eastern (Sikkim. the two countries are looking forward to sign the Border Defence Co-operation Agreement (BDCA). in addition to the 2005 Peace and Tranquility agreement. Objectives: Help eliminate hunger. India has also reiterated that LAC is “the most peaceful border [where] not a shot has been fired since 1975. forestry and fisheries more productive and sustainable Reduce rural poverty Enable inclusive and efficient agricultural and food systems Increase the resilience of livelihoods from disasters FAO chief Jose Graziano da Silva Courtesy FAO website What is Minimum Support Price (MSP)? Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. MSP is price fixed by Government of India to protect the producer .html Courtesy: Wikipedia What is WTO’s Agreement on Agriculture (AoA)? The AoA was negotiated during the Uruguay round of General Agreement on Tariffs and Trade (GATT) and came into force with the establishment of the WTO in 1995. China.2013 For further reading you can also refer the below link http://www. The minimum support prices are a guarantee price for their produce from the Government.farmers http://insightsonindia. Arunachal). Jamaica among others. Uganda. against excessive fall in price during bumper production years. FAO’s mandate is to raise levels of nutrition. 2013 comprises a new set of CBM for border management. Kashmir). Negotiations for which began in March. The AoA has three pillars namely. govt. the European Union.business-standard. domestic support. FAO has 194 Member Nations.com
More about the Border Issues & LAC
The Line of Actual Control (LAC) is the effective border between India and the People’s Republic of China (PRC). market access and export subsidies. This will provide an additional mechanism to deal with problems at the LAC (Line of Actual Control). Tanzania. The major objectives are to support the farmers from distress sales and to procure food grains for public distribution. Cuba. Source . The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP). An intergovernmental organization.057-km long and traverses three areas of northern Indian states: western (Ladakh. The LAC is 4. two associate members and one member organization. The Depsang incident saw the status quo being restored within three weeks compared to a six-year face off in 1986-93 because there was a mechanism in place to do so.”
More about FAO Achieving food security for all is at the heart of FAO’s efforts – to make sure people have regular access to enough highquality food to lead active.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Nigeria. In case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market. Face-offs at the LAC could never be ruled out as long as the boundary issue remained unresolved. agencies purchase the entire quantity offered by the farmers at the announced minimum price. food insecurity and malnutrition Make agriculture. Some of the members include India.Arthpedia INDIA – CHINA RELATIONS 1) Border issues In the next meet between India and China.
Page 13
. It was created in order to help a group of countries that were all facing similar problems. BDCA was first suggested by the China in 2012. middle (Uttarakhand. better the lives of rural populations and contribute to the growth of the world economy. like allowing them to continue to restrict access to their agricultural markets. Peru.

The 1996 agreement states. Source Wikipedia 2) VISA issue As a counter-move. the other region being Aksai Chin in the western Himalayas. These incidents might compromise India’s sovereignty and downgrade the status of ArP. India can issue stapled visas to visitors from the Tibet Autonomous Region. For example.r. Recently. in the eastern sector of the boundary. Even though India has made several attempts on China to put down its claim on ArP. the Indian government claims that Chinese troops continue to illegally enter the area hundreds of times every year. which has to be renewed in India every year. Strong Indian reaction which included the suspension of defence exchanges. Doing away with the latter restriction is one of the proposed changes that have been under discussion. while India says China is in occupation of at least 38. and difficulties in renewing visas at Foreigner Regional Registration Offices (FRRO) in India. 150 families most of whom are residing in China or other countries have found it difficult in relocating to India Their main objection is to a long-standing rule that bars Chinese citizens or anyone whose parents. particularly for business. According to the existing rules. the previous championships saw the emergence of Deepika Kumari who won the silver medal in the world senior championships of late. Chinese have always maintained that it has a “consistent” visa policy for disputed territories. What is the Issue about? The ambiguity in China’s visa policy has left officials and analysts in India perplexed. A student from Arunachal was not allowed to join a 100-member youth delegation to China after she was issued a stapled visa. China claims around 90. They oppose rule barring Chinese citizens from acquiring PIO (Persons of Indian Origin) status. And.com
.000 square kilometres in Aksai Chin. Relaxation of visa restrictions would be “conducive to promoting personnel exchanges. Chinese spouses have to apply for “X entry” visa. Cumbersome extension process this leads to a “visa vacuum” situation where extensions are not granted even beyond the original expiry date. in the west Stapled visas to Arunchalis would lead to misgivings over opening up to China via the Bangladesh-China-India-Myanmar (BCIM) project. Discriminatory ‘Visa’ Policy with regard to PIO’s the issue over “discriminatory” visa policies has been raised by the Indian Chinese families.000 Yuan (Rs. two young archers from Arunachal Pradesh (ArP) were prevented by authorities from leaving for China with stapled visas on their passports. grandparents or even greatgrandparents were Chinese nationals from acquiring PIO status. inconsistent application of rules across different Indian Consulates and Embassies.” However.” With increasing movement of people between both countries. two more similar incidents can be recollected. in 2011. undermining India’s negotiating position on the boundary dispute. especially among businesspeople who often complain of long delays because of clearances needed from the Home Ministry.2013 Our View: The LAC consists of McMahon Line in the east and the line up to which each side exercises actual control in the west (the Aksai Chin region) The term “LAC” gained legal recognition in Sino-Indian agreements signed in 1993 and 1996. This was not the first of its kind. Add to this are the bureaucratic hurdles involving inordinate delays in applying for entry visas. 1 lakh) deposit. But then. “No activities of either side shall overstep the line of actual control. On the tourism front too. but this is harmful for the diplomatic relationship between the two countries. Hence any issue must always be taken forward through a ‘dialogue’ and an amicable solution must be reached among the Asian Giants From the sports fraternity perspective. China welcomes a move to liberalise visa regime w. and hence residents of ArP do not need visas to travel to China. which is granted to most other foreign nationals who marry Indian citizens.China sees ArP as its territory. and cannot reapply for visas for a two-month period after travel.t Business & Tourism China and India are looking forward to liberalise the current limits on business and tourism travel and relaxation of the visa regime. It was resolved and both Chinese and Indian troops withdrew in exchange for an Indian agreement to destroy some military structures over 250 km to the south near Chumar that the Chinese perceived as threatening. and Page 14
Stapled Visa for Arunachal Pradesh Residents China still does not recognize India’s ownership of ArP.000 square kilometres in Arunachal Pradesh. led to China’s shift in stance then. Recent violations: In 2013 there was a three week standoff between Indian and Chinese troops 30 km southeast of Daulat Beg Oldi. and economic and trade cooperation. it must also be noted that this issue should not be a hurdle for the future prospects of the athletes. They were headed for the Youth World Archery Championship in Wuxi. a Karate team from the State was prevented from boarding a flight in New Delhi because its members had been issued stapled visas by the Chinese Embassy. Earlier in 2012. although the deposit is seen by agents as the bigger obstacle. both countries were able to resolve another visa row over Jammu and Kashmir (J&K) with China quietly withdrawing stapled visas that it began issuing in 2009 to residents of J&K. travellers have to put up a 10.
http://insightsonindia.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .that effectively prevents Indian citizens who are married to Chinese spouses from raising their families in India. Since the biennial championship will be the stepping stone to Rio Olympics for many of the youngsters. visa restrictions on travel to India has become a major issue in China.

Also the Chinese projects in the PoK would most unlikely be discussed. Pakistan. During the Chinese premier’s visit to India in May. The current rules are basically infringing on the right of citizenship to family life. to set up the Special Representatives mechanism to negotiate on the boundary question. or the agreement on political parameters and guiding principles announced in 2005 when former Premier Wen Jiabao visited India. Nepal and Iran. has proved to be the most difficult. Exemption from the requirement of registration if stay in India does not exceed 6 months. 4) Hydroelectric Project or Dams On the hydro-project front. or The person is the spouse of a citizen of India or of a PIO and has been so for two years or more. Bhutan. State Governments and other Government agencies. Page 15
http://insightsonindia. trade. Nepal.e.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Should the continuous stay exceed six months. The FRRO will issue a “Residential Permit for PIO” which is typically valid till the expiry of the PIO card holder’s passport. or The person’s parents or grandparents or great grandparents were born in and permanent residents of India and never moved to (i. 2013 the two countries had agreed on sharing of the hydrological data under a renewed agreement. to decide a framework to settle the dispute in all sectors. Whereas the China is interested in setting up a manufacturing and Special economic Zone (SEZ) in India. the visit is unlikely to have landmark agreements such as the move in 2003. and delays on account of Home Ministry clearances. The conditions for issuing a PIO card to a person are that: The person ever held an Indian passport. India wants to push for greater market access in certain sectors such as pharmaceuticals and Information Technology. Following Agreements were made during the three-day on 22nd October. and is tilted heavily against India. Institutes of Technology. Facilities available under the various housing schemes of LIC. there is a CEOs’ forum which is also looking at improving the trade balance. The second stage. it is around $ 66 billion. This requirement is not applicable for minors. Afghanistan. Other countries that are facing similar problems The bar on PIO status also extends to citizens of Sri Lanka. transfer and disposal of immovable properties in India except in matters relating to the acquisition of agricultural/plantation properties. Facilities available to children of Non Resident Indians for getting admission to educational institutions in India including medical colleges. other areas of cooperation such as industrial parks and to start negotiations on a regional trade agreement. Percieved Drawbacks: However. Institutes of Management etc. Unlike business visas. Parity with non-resident Indians in respect of facilities available to the latter in economic. under the general categories. It can take up to four or five months for the visa to be issued. China. They have to apply for a protected area permit. (Courtesy Wikipedia) 3) Economic Issues Improving on the balance of trade – Though trade between India and China slowed down last year. the wide perception is that boundary talks have remained deadlocked. The PIO Card Program came into effect on 15 September 2002. financial and educational fields. Bhutan. Only when spouses can apply for Indian citizenship — usually after at least seven years of being resident in India can they start working. granting visas to the family does not involve “security threat”. Bangladesh.2013 has five-year validity. More about Persons of Indian Origin Card PIO Card is a form of identification issued to a Person of Indian Origin who holds a passport in another country other than Afghanistan. Since that agreement. holding. Apart from the strategic economic dialogue. During the five-year period. 2013. the Chinese spouses are barred from working in India. engineering colleges. The 2005 agreement marked the conclusion of the first of three stages. registration will be required within 30 days of the expiry of six months with the concerned Foreigners Registration Officer. grand parents or great grandparents must not have been a national of Bangladesh or Pakistan at any point of time.com
. This restriction would cause financial burdens on the family. infrastructure. and Sri Lanka. India wants a joint mechanism that will ensure more transparency on Chinese plans on proposed dam projects on the river Brahmaputra. Registration/Residential Permit PIO card holders need to register with the appropriate FRRO (Foreigner Regional Registration Office) if they are planning to stay in India for more than 180 days. during the former PM Atal Bihari Vajpayee’s China visit. Another proposal was building a Bangladesh-China-IndiaMyanmar (BCIM) economic corridor to strengthen investment. were never nationals of) Bangladesh and Pakistan. Persons with a PIO are not allowed to vote Eligible for an inner line permit. or The person and his/her parents. The various benefits available to PIO cardholders are: No visa required for visiting India during the period of validity of PIO Card. All facilities in the matter of acquisition.This is of great significance to regional connectivity as this would bridge South Asia and East Asia.

The BDCA would ensure ‘peace. China pushed for Bangladesh-Myanmar-India-China (BMIC) economic corridor along the south Silk Route. despite the growing import demand from India and needs for servicing. Kunming and Kolkata. and exchange ideas on transport policy and transport technology. agreed to set up a permanent presence in India by opening power equipment service centres to address concerns of their increasingly large customer base. The BDCA envisages a graded mechanism. The agreement would create a new institutional mechanism that will further deepen economic co-operation between the two countries. Bilateral trade in 2012 reached $66 billion. India and China have agreed not to use force (exchange of fire or an armed conflict) in case of face-offs on the Line of Actual Control (LAC). starting with meetings between border personnel in all sectors of the LAC. and combating smuggling of arms and wildlife. stability and predictability’ on the borders. (4) Agreement on Boosting Tourism To co-operate in the roads sector. Both the sides have recognized. and the India-China Annual Defence Dialogue. Special Representatives on the boundary question have been “encouraged” by the two leaders to continue their efforts. India also brought up the issue of terrorism emanating from Pakistan. and also there will be working mechanism for consultation and co-ordination on India-China Border Affairs. Since peace and tranquility on our borders must be the foundation for growth in the India-China relationship. It provides a mechanism to manage and defuse face-offs when it happens and also provides an environment which would eventually prevent it from happening. in 2013 is on track to exceed even last year’s record $28 billion. treat each other with courtesy and prevent exchange of armed conflict”. the following agreements were made: (1) Border Issue: On the Border Defence Co-operation Agreement (BDCA) BDCA was one of the nine agreements signed by both sides. the new one is not just about sharing data. This is to ensure local issues are settled locally between local commanders on the ground. then Higher-level meetings between the two ministries of defence. with the Chinese side yet to decide on a location with around five sites under consideration. that what is on their side is different from our side. the Chinese power companies had limited their business to selling equipment. for the first time. 2013. organising non-contact sports.” This would specifically be related to the hydropower projects that China is building on the Brahmaputra. The major drawback of the meet: Stapled visa issue continues to stay Page 16
http://insightsonindia.5 per cent. The BDCA also acknowledges that there is a lot of non-military activity along the LAC. and three other projects got the goahead in January. 1996 and 2005 — that “the border is asymmetrical.2013 At the conclusion of talks between Prime Minister Manmohan Singh and Chinese Premier Li Keqiang. but has widened the scope to discuss “other issues of mutual interest. and Chinese infrastructure-building in Pakistan Occupied Kashmir (PoK). A hotline between the two military headquarters is under consideration. After nine months of this year. adequate capacity to service this equipment is a major issue. like in all previous agreements — 1993. and joint small-scale tactical exercises. including assisting each other on locating livestock. and prescribes ways to manage this. Though India imports 60.000 MW-plus of Chinese equipment. (3) Agreement on the Economic front Trade: The two countries also discussed ways to bridge the increasingly widening trade imbalance. India and China have also agreed that if the two sides come faceto-face in areas where they have differing perceptions of the LAC. Though there was little progress made over China issuing stapled visas to people from Arunachal Pradesh. followed by periodic meetings between officers of the regional military headquarters. the deficit reached $24. Construction of a 510 MW project had begun at Zangmu. and Chengdu and Bengaluru aimed at boosting tourism.7 billion. This will not affect India’s right to build infrastructure at the border. (2) Strengthening Co-operation on Trans-border In the trans-border river agreement. Each side will approach its security in its own way”.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Hitherto. Unlike the existing agreement. India always wanted more transparency from the Chinese side on the number and size of these projects. an earlier MoU to provide hydrological date in the flood season has been extended to cover a longer time period. “both sides shall exercise maximum self-restraint. not use force or threaten to use force against the other side. Manufacturing: China’s biggest power companies have. which. with India’s exports down by 22.com
. as well as ‘sister cities’ agreements between New Delhi and Beijing. people or vehicles that have may have strayed. And also both sides were unable to reach an agreement on industrial parks. This was among a set of confidence building measures (CBM) contained in the BDCA. Other CBMs in the BDCA include joint celebrations by military personnel at the border on major national or military days and festivals. refrain from any provocative actions. 2014 has been designated as a “Year of Friendly Exchanges” between India and China and both countries would discuss with Myanmar ways to commemorate the 60th anniversary of the Panchsheel.

1971 into the Line of Control (LOC) between India and Pakistan and it was agreed that “neither side shall seek to alter it unilaterally. the ASEAN group has agreed on the development of a Code of Conduct (CoC) to intensify official consultations between China and four members of ASEAN— Brunei. and a key to durable peace. China rules out intervention in South China Sea dispute In order to prevent the tension over the South China Sea (SCS)further escalating to a conflict. to bring about withdrawals of troops and an exchange of PoWs). asserting that the two countries were absolutely capable of resolving the dispute on their own.” India has consistently weighed against a third party intervention on resolving the Kashmir dispute. Countries should work constructively as partners to jointly manage and control tensions and differences”. to convert this LOC into international border. Chinese premier Li Keqiang sought to rule out outside intervention in settling the maritime issues. However. However China has allowed visa-free entry to spouses of diplomats. To build the foundations of a cooperative relationship with special focus on people to people contacts. “rebalance to Asia” policy and has added concerns over the U. “Territorial and maritime disputes between relevant countries in this region should be resolved by countries concerned through friendly consultation.


Courtesy. INDIA -PAKISTAN India rejects Pakistan’s plea for U. and abjuring hostile propaganda. Ever since the Simla Agreement (which had superseded the Karachi Agreement of 1949). Many Indian bureaucrats have later argued that a tacit agreement. India has retaliated that Jammu & Kashmir (J&K) is an integral part of India and the provisions of the Simla Agreement too states that there is “no question of any third party. To uphold the inviolability of the Line of Control (LoC) in Jammu and Kashmir. maintained that Kashmir dispute is a bilateral issue and must be settled through bilateral negotiations as per Simla Agreement. non-interference in each other’s internal affairs. The future of India-Pakistan ties depends on Pakistan being accountable of what happened in Mumbai and sustained effort in improving relations in other spheres. China has requested India to ease a two-month bar on second entry applied to all foreigners after David Coleman Headley was found to have entered India several times in quick succession to conduct preliminary observation for the 2008 Mumbai attacks. intervention on Kashmir The Pakistan Prime Minister Nawaz Sharif had seeked U. There was a need to limit this race and think about these issues. respect for each others unity. This statement has sent a strong message to the U. According to a report. Though China has dropped its practice of giving stapled visas to people from Jammu & Kashmir. friendship and cooperation. India has. To encourage more travel to India. was reached during a one-on-one meeting between the two heads of state. mutually agreed to by India and Pakistan. It should also be noted that. ‘No MoU on simplifying visa procedures was signed during Manmohan’s China visit’.Ministry of External Affairs Few major outcomes of the Simla Agreement are: Both countries will “settle their differences by peaceful means through bilateral negotiations”. The Simla Agreement contains a set of guiding principles. sovereign equality. Pakistan does not agree with India’s view and seek UN intervention in Kashmir. the Philippines and Vietnam. The agreement converted the cease-fire line of December 17. had denied any third party intervention even that of United Nations. particularly noteworthy:  A mutual commitment to the peaceful resolution of all issues through direct bilateral approaches. intervention on resolving the Kashmir dispute. However. According to Li. Stressing the need to uphold peace and stability in East Asia. The following principles of the Agreement are. which both sides would adhere to while managing relations with each other. India has kept the United Nations Military Group in India and Pakistan on the sidelines and argues that it has become redundant.S – China competition being played out in these waters. many a times. Malaysia.S’. He referred to the arms race and said the situation could get dangerous. But this was unequivocally rejected by India as it went against its long-held position of resolving the territorial dispute through bilateral dialogue.e. These emphasize: respect for each other’s territorial integrity and sovereignty. China had decided to relax its policy of not issuing travel documents to ArP residents and instead hand out stapled visas.com
Page 17
. Under the Simla Agreement both countries undertook to abjure conflict and confrontation which had marred relations in the past. this is the most important CBM (confidence building measure) between India and Pakistan. irrespective of mutual differences and legal interpretations”. it was impossible for Indians from the State to travel to China.
What is Simla Agreement? The Simla Agreement signed by Prime Minister Indira Gandhi and President Zulfikar Ali Bhutto of Pakistan on 2nd July 1972 was much more than a peace treaty seeking to reverse the consequences of the 1971 war (i. and to work towards the establishment of durable peace. It was a comprehensive blue print for good neighbourly relations between India and Pakistan. Pakistani
http://insightsonindia.S.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . it won’t do the same with ArP.S.2013 India will have to bear with China’s policy of issuing stapled visas for people from Arunachal Pradesh(ArP) Earlier in 2009. about six lakh Indians visited China in 2012 as against one lakh Chinese to India. however. political independence. 1972 and thus.

Iran-Pakistan Gas pipeline unviable Pakistan is demanding U. the Directors-General of Military Operations (DGMOs) of India and Pakistan had a telephonic conversation over the hotline. The price of the gas purchased under the IPGP project is linked to crude oil prices and this has not been taken into account. has said that the Indian side has carried out unprovoked firing on its 27 posts recently. the Pakistan government has stood by its stand saying that. The agreement with Iran stipulates construction of Pakistan’s side of the pipeline by December 2014. 2014 to support greater trade. Dhaka too can bring back fugitive crime lords such a Subrata Bain and Sazzad Hossain and put them on trial. Nearly 50% of the energy needs are met through natural gas. but more of a bailout plan. Both sides have the option to cancel the treaty in six-month notice.S. Pakistan has blatantly ignored the energy dynamics and its pricing while going for this deal. The land customs stations at Benapole-Petrapole and Akhaura-Agartala will remain operational seven days a week from January 1st. On this line. Ceasefire violations by Pakistan along the LoC and IB have increased and this year (2013) alone as many as 204 such incidents occurred in Jammu and Kashmir.
http://insightsonindia. India can now take back ULFA leader AnupChetia. According to the 2013 agreement with Iran. the Pakistan has suggested that the meeting of the two DGMOs (Directors-General of Military Operations) be implemented quickly to resolve the issue of ceasefire violations. This identification of a new “cease-fire line” by both the states has been argued by India as making United Nations Military Observer Group (UNMOGIP)in India and Pakistan insignificant. So it wants immediate dialogue to resolve this matter.com
Page 18
. Pakistan seeks early meet of DGMOs In spite of the recent ceasefire violations by the Pakistan in the LoC. Certain steps were taken with regard to Customs cooperation: India and Bangladesh have decided to leave two important land ports open seven days a week from January. The two countries will now be able to exchange convicts or undertrials as and when required. Pakistan has a combined power generation capacity of 24000 MW which it is unable to meet due to scarcity of natural gas supply. Pakistan have a different take on this issue and both countries still host the UN mission Courtesy Wikipedia Firing continues along LoC as DGMOs discourse On the backdrop of continued violation of the ceasefire by Pakistan along the Line of Control (LoC) and the International Border (IB). 2013. Pakistan had not taken any substantial step to initiate the process of tapping the country’s shale gas potential except developing a framework. from Bangladesh. titled “Rethinking Pakistan’s Energy Equation: IranPakistan Gas Pipeline” claims that the gas purchase agreement and pricing of the Iran-Pakistan Gas Pipeline (IPGP) should be renegotiated or else the project could prove fatal to country’s economy. In the existing arrangement. the purpose of UNMOGIP was to monitor the ceasefire line as identified in Karachi agreement of 1949 which no longer exists. 2013.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . It agreed on extending the car pass system to those stations to allow movement of trucks of the importing country for unloading cargo.BAGLADESH India-Bangladesh extradition treaty takes effect & further cooperation on Customs The extradition treaty between Bangladesh and India came into effect with the handing over of the instruments of ratification of the much-awaited pact. This proposal was the outcome of the first bilateral interaction between PM Manmohan Singh and his Pakistani counterpart Nawaz Sharif in October. Pakistan will import an amount of one billion cubic feet a day (BCFD). The DGMO-level meeting is yet to be held. Pakistan will have to look out for other options other than the unconventional and alternate energy sources. However. But Pakistan needs a total of $2 billion to complete its share. it was in fact India which has violated the ceasefire on number of occasions. The treaty will allow exchange of convicts sentenced for more than a year in prison but will not be applicable to political prisoners and asylum seekers. who has been lodged in prison for many years. IPGP project is not the panacea for Pakistan’s energy problem. This would last for 20 years with an option to extend it for another five years. to ease sanctions on Iran. when PM’s of both the countries had met in New York in September. the two DGMOs talk over the hotline every Tuesday. Iran has offered $500 million and has already constructed more than 900 km (out of 1100 km) of the pipeline on its territory at a cost of $700 million. Pakistan govt. INDIA. The 9th Joint Group of Customs (JGC) also identified 16 stations as ‘high bilateral trade importance’ and agreed to take measures for synchronisation of working hours and days. so that the two countries can go-ahead with their long pending natural gas pipeline. As according to India. and it was Pakistan’s policy not to indulge in firing first. The proposal for the DGMOs meet was agreed upon by the two countries. Moreover.2013 bureaucrats have denied any such thing. If Pakistan fails to meet this deadline it will be liable to pay heavy daily penalties. The treaty would further strengthen the security of the two countries. The report also notes that. A recent report by Sustainable Policy Development Institute (SDPI). which can run into a million dollars per day.

INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .S. called the Sheikh Hasina government “illegal” alleging that its tenure had expired on 24th October. five people were killed in the police firing on opposition protests across the country.. This was in reference to the 2010 nuclear liability law that has been a stumbling block in finalizing an agreement for Units 3 and 4 at the project in Tamil Nadu. Possible consequences: Issue: The Taliban might take advantage of the situation and this would lead to further instability of Afghanistan.S and Afghanistan have been in constant talks over a bilateral security agreement which is necessary for U. It would be an executive agreement. . for the first time.S. while Mr. http://insightsonindia. Nuclear reactor (KNR) On citing that. Below are the issues discussed:
Page 19
. Critics have argued that the U. Currently. But the ruling Awami League had abolished the provision in 2011. Senate would not have to ratify it. Why is the agreement necessary? The agreement is necessary to give the U.S guarantees against future foreign intervention from countries like Pakistan.S. Why are the discussions being stalled? Discussions had been repeatedly stalled in recent weeks over Mr.S troop presence beyond 2014 in Afghan. AFGHANISTAN NATO’s Afghan mandate extended for last time Kudankulam.S and India have common concerns on Bangladesh. Hundreds of activists of the Jamaat-e-Islami and its student wing Islami Chhatra Shibir participated in Ms. including about 52.Afghanistan beyond 2014 U. the opposition leader Ms. According to reports. and India have stepped up efforts for a negotiated settlement to the crisis in Bangladesh even as the Opposition alliance ended a three-day violent hartal to force the Sheikh Hasina government to concede its demand for a neutral caretaker government to conduct elections. 2014 INDIA -RUSSIA India Russia Relationship on further consolidation of Strategic
The 14th Annual Summit kicked off from 21st October. and NATO have inflicted suffering on the Afghan people and repeatedly violated its sovereignty. Five killed as violence erupts in Bangladesh The Bangladeshi opposition coalition has called for a 60-hour hartal across the country. However.com There have been differences between the two countries over the ‘liability clauses’ ever since the India’s Nuclear liability Act. since June 2013 as the Afghan forces have taken the lead for security nationwide.2013 Both sides also greed to consult relevant stakeholders to simplify the travel in ‘Maitree Express.The agreement envisages Russia supplying 15 to 18 nuclear reactors in locations across India. There were wide range of issues discussed and agreements signed at the annual summit held in Russia. Khaleda Zia’s rally. The situation deteriorated in the past week following a series of angry comments from Karzai that the United States and NATO were repeatedly violating Afghanistan’s sovereignty and inflicting suffering on its people.000 international troops in Afghanistan. Zia.S. calling for the release of their leaders who have been convicted or are undergoing trial for war crimes. meaning the U. and U. Karzai wants assurances over sovereignty that have deadlocked negotiations in the past year. but if no agreement is signed.S. That number will be halved by February and all foreign combat troops will be gone by the end of next year. 2013 and wanted a legal provision that requires a neutral caretaker government to be set up three months before elections slated for January 24. Karzai’s demand for the U.S.S. there are about 87. PM Manmohan Singh had conveyed India’s commitment to “fully implement the road map on civil nuclear co-operation” signed by the two countries in 2010. U.000 troops in the country to go after the remnants of al-Qaeda.S. wants to keep as many as 10. wants a deal by the end of the month. India step up efforts to end Bangladesh crisis The U. a legal basis for having forces in Afghanistan after the end of 2014 and also allow it to lease bases around the country.S. 2010 came into existence. by the time government needs to initiate dialogue on a neutral poll-time government. handing the job of overseeing polls to a reformed Election Commission. KNR was the high point of India-Russia ties. The NATO-led International Assistance Force (ISAF) is in a supporting role. demands for any post-2014 residual force to be able to conduct counterterrorism and counterinsurgency operations. troops would have to leave by December 31. the situation in Afghanistan “still constitutes a threat to international peace and security” United Nation Security Council (UNSC) has decided to extend the mandate of the NATOled force in Afghanistan for the last time before it hands over total responsibility for security to Afghan forces at the end of 2014. U. The U.’ the lone direct train service between Dhaka and Kolkata. Leader of the main opposition Bangladesh Nationalist Party Khaleda Zia. The U. counter-terrorism.S. connectivity and energy cooperation. supported the trials of war criminals “on principle” though she alleged that the war crimes tribunals were selectively picking Jamaat and BNP leaders. all U. U. 2013. 2014.000 Americans.like reemergence of fundamentalism.

INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . India’s point of view is that the “right to recourse” is not automatic. Page 20
http://insightsonindia. and Russia (RBK) The Customs Union of RBK came into existence on January 1. India would be involved in joint design. there is enough room in the law to ensure supplier liability does not become a major hurdle.
More about the Customs Union of Belarus. This would send a strong message to Pakistan that it cannot claim ownership over Afghanistan post2014. Plans for further cooperation in aviation technologies (helicopters and aircraft) and shipbuilding would be discussed next month (November. Both sides want Afghanistan & W. Kazakhstan. terrorism and radicalism after the US military drawdown.N. India is the only country to which Russia has agreed to give access to Glonass (Russia’s equivalent of the U. India agrees for FTA with Belarus. The emphasis was on the “quality” of trade as it included machinery and equipment. Kazakhstan and Belarus. the sixth stealth frigate Russia has built for the Indian Navy. where the company already has its largest investments. which will enable the Indian military to greatly improve the accuracy of its weapon systems. arming. Apart from nuclear energy. Kazakhstan and Russia (RBK) India and Russia have agreed to work towards the creation of a Joint Study Group for studying the possibility of signing a Comprehensive Economic Cooperation Agreement (CECA) between India and the Customs Union of RBK. On the Economic front: The bilateral trade is only $ 11 billion. Security Council (UNSC) and for full membership in the Shanghai Cooperation Organization (SCO) Russia has also agreed on giving ‘due consideration’ to India’s bid to join the Missile Technology Control Regime(MTCR) and to support its full membership in the Nuclear Suppliers Group (NSG) The two sides have affirmed their commitment to further intensify political interactions in the Russia-India-China triangular format (RIC). since the agreement to supply Kudankulam-1 and 2 was made before the Indian liability law came into existence and hence reactors 3 & 4 should be treated as an extension of the same project. as it is essential to continue consultations concerning regional security at the level of High Representatives of China. India has agreed to initiate free trade agreement (FTA) with the customs union of Belarus. strategic. other issues like political. the delivery this year of the Trikant frigate. and Russia. development and production of key defence platforms Both the sides have agreed to extend indefinitely their 15-year-old partnership for producing the BrahMos supersonic anti-ship missile and to develop a still more potent hypersonic version of the missile. missile and naval technologies and weapon systems As a key defence partner. Since the role of the supplier in any accident has to be proved. and there were talks on further increasing the trade. Declaring “no tolerance for sheltering. the trade between the two countries had risen by 25 % in 2012. India has also sought Russian support for concluding a Free Trade Agreement (FTA) with the customs union of Russia. training or financing of terrorists. being held jointly by Russia and the United States. and could be settled only through political means. In order to give economic ties a boost.2013 Russia has insisted that the 2010 law should not apply to its supply of Kudankulam reactors 3 and 4. trade and military issues would also be discussed.com
. Despite an adverse global situation. as well as licensed production of the Su-30MKI fighter plane and T-90S tanks. Global Positioning System (GPS)) military-grade signals. From the Defence Perspective: Both India and Russia have resolved to enhance cooperation in the fields of rocket.Asia to be a stable region. On the International issues: Both have rejected military solution in the crisis-ridden Middle East country (Syria) as there is a strong belief that the crisis should not be resolved by force.Both the sides have stressed the importance of next month’s(November) meeting of the RIC Foreign Ministers in India. Russia has reiterated its “strong support’ to India for a permanent seat in the U. Russia To further strengthen the economic ties. India and Russia.S. 2013) during the defence minister’s visit. Kazakhstan. India and Russia have also agreed to enhance cooperation in space technologies. 2010 between the states of Belarus. The joint statement was issued after the 14th India-Russia annual summit meeting between Prime Minister Manmohan Singh and Russian President Vladimir Putin. According to a joint statement issued at the summit “Russia would welcome India’s participation in Geneva-2” international conference on Syria. The joint statement welcomed the completion of trials of the Vikramaditya aircraft carrier. Progress in the construction of the fifthgeneration fighter aircraft and multi-role transport aircraft was also in the list. Kazakhstan. They want Afghanistan to be free of extremism. There was an agreement between the two sides to study the possibility of an overland gas pipeline.” the two sides condemned terrorist acts as “attacks on the freedom and democratic values” and “aimed at undermining the territorial integrity” of India and Russia. The Customs Union was launched as a first step towards forming a broader European Union-type economic alliance of former Soviet states. India and Russia are also working on increasing ONGC Videsh Limited’s involvement in oil and gas exploration in Russia.

In the backdrop of its ‘West Asia policy’. France. France and Germany) Russia has proposed a nuclear deal with Iran. According to Russia. and to ward off the possibility of “regime change” through armed external intervention. apparently to undermine its perceived nuclear weapon ambitions. which is necessary to start off atomic power plants. Though North Korea acceded to the NPT in 1985 but never came into compliance.
All you need to know about NPT: The NPT is a landmark international treaty whose objective is to prevent the spread of nuclear weapons and weapons technology. Britain. 2012. the member states put together a joint commission on fostering closer economic ties. The 3 pillars of NPT 1) 2) 3) non-proliferation. and the right to peacefully use nuclear technology
To further the goal of non-proliferation and as a confidencebuilding measure between States parties. Russia. the United Kingdom. on condition that Tehran agrees to put all its atomic installations under international supervision. to promote cooperation in the peaceful uses of nuclear energy and to further the goal of achieving nuclear disarmament and general and complete disarmament. against its atomic infrastructure. which Tehran has signed. Source UN website & Wikipedia Russia steps in to improve military ties with Iran After consolidating in Syria.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Russia. facilitate movement of professionals. A total of 190 parties have joined the Treaty. The strain in the relationship between Iran and the West was due to : Iran’s successful enrichment of uranium to a 20% level which was apprehended that if it managed to enrich to a 90% level. Opened for signature in 1968. services and people. which provides for free movement of goods. if any deal has to materialise.S. the Treaty establishes a safeguards system under the responsibility of the International Atomic Energy Agency (IAEA). permitted by the Nuclear Non-Proliferation Treaty (NPT). while Israel has had a policy of opacity regarding its own nuclear weapons program. The common military agenda would be to deter air strikes against Iran. Iran would be on the verge of developing an atomic bomb and Low level of trust between Iran and the six global powers was another setback to the smooth progression of a dialogue. including the five nuclear-weapon States (United States. China.com
Page 21
. Pakistan and North Korea have openly tested and declared that they possess nuclear weapons. Iran Following the conclusion of two-day talks between Iran and the six global powers (U. the three states are a single economic space. Since January 1. Safeguards are used to verify compliance with the Treaty through inspections conducted by the IAEA. Russia focused on air defence tactics as there were apprehensions from the Iran side of a potent threat of massive air strikes by Israel and the U. Both the sides are working to overcome the S-300 hurdle. liberalise norms for service and investments.. the Treaty entered into force in 1970. This would be a major step in normalizing Iran’s ties with the West. For this to happen the ‘unilateral sanctions’ must be removed. Russia pushes for a competitive environment between West. Under the CECA. seeing it as an attempt to reestablish a Russian dominated USSR-type union amongst the Post-Soviet states Courtesy – Wikipedia Significance of CECA The three countries took their economic integration to a new level with the implementation of the common economic space. The Treaty represents the only binding commitment in a multilateral treaty to the goal of disarmament by the nuclearweapon States. Iran would now be willing to limit nuclear enrichment to 5%. disarmament. as part of its bid to re-emerge as a major player in the Levant and Gulf. and China (also the five permanent members of the United Nations Security Council). The Treaty promotes cooperation in the field of peaceful nuclear technology and equal access to this technology for all States parties. On November 2011. two sides would significantly reduce duties on the maximum number of tradable goods. Russia is set to play a leading diplomatic role in resolving the enduring crisis in Iran. Four other states are known or believed to possess nuclear weapons: India. planning to create a Eurasian Union by 2015. announced its withdrawal in 2003. which Tehran is planning to establish.2013
The member states are planning to continue with economic integration and were set to remove all customs borders between each other after July 2011. it must allow Iran to carry out uranium enrichment. The United States is opposed to the Customs Union. which has been strained for decades.S. S-300 is an air-defence missile which can down high-speed incoming
http://insightsonindia. Russia is set to expand military ties with Iran. while safeguards prevent the diversion of fissile material for weapons use.

Mr. Georgia was occupied by Soviet Russia in 1921. But Iran would be more inclined to consider acquisitions of the Antei-2500 missiles as these weapons are used to protect mobile ground troops from aerial attack. relationship The Georgian President Mikheil Saakashvili will end his 10-year rule.S. a top ally of Syria and Iran. Jordan. also known as the Eastern Mediterranean. as the citizens vote in the presidential election. This lasted until the Rose Revolution of 2003. Cyprus. Despite Georgia’s importance to the West as a gateway to Caspian oil and gas. NATO put on hold plans to grant it membership in the alliance. and to the southeast by Azerbaijan. becoming the Georgian Soviet Socialist Republic and part of the Soviet Union. Located at the crossroads of Western Asia and Eastern Europe. The election will mark Georgia’s transition from a presidential to a parliamentary republic. Significance of the election to Georgia More about Levant region The Levant. The Levant has been described as the “crossroads of western Asia. wherein Syria has committed to chemical disarmament. It contains two de facto independent regions. with key powers of the President transferred to the Prime Minister. The Russians have offered Iran Tor air defence systems as an alternative to the S-300 missiles. and parts of southern Turkey (Aleppo Vilayet). sanctions against Iran. Central Asia. On the other hand. On the one hand. to the north by Russia.Saakashvili is the man who triggered a short but fierce war with Russia. In November. to a dangerous level of subversion. Russia had to stop supplying this missile following the U. Israel. Mr. the Palestinian territories. Prime Minister Bidzina Ivanishvili. The capital of Georgia is Tbilisi. In return Syria has obtained security guarantees that would allow Russia for a deep rooted military relationship with Damascus (Syria).N. This is more appealing to Iran. which gained limited international recognition after the 2008 Russo-Georgian War.trained Georgian army.S. As this may see a renewal of rivalry between Russia and US for control of the strategically located post-Soviet state. 2013. is a geographic and cultural region consisting of the “eastern Mediterranean littoral between Anatolia and Egypt”.Saakashvili’s adventurism enabled Russia to strengthen its foothold in the Caucasus after routing the U. to the south by Turkey and Armenia.
More about Georgia Georgia is a sovereign state in the Caucasus region of Eurasia.com
Page 22
.Ivanishvili to step down as Prime Minister in November. the eastern Mediterranean and northeast Africa”. The Levant consists today of Lebanon. Georgia was annexed by the Russian Empire. Uncertainty associated with the constitutional reform may be further heightened by the decision of Mr. Both the sides are committed to the prevention of regime-change in Syria. it is bounded to the west by the Black Sea. But with the geopolitical situation transforming rapidly following attempts at regime change in Syria by prominent Gulf States and western powers. After a brief period of independence following the Russian Revolution of 1917. after which the new government introduced democratic and economic reforms. At the beginning of the 19th century.
http://insightsonindia. With Syria. Syria. Georgia considers the regions to be part of its sovereign territory under Russian military occupation Courtesy – Wikipedia
Courtesy -Wikipedia and Basrsoft ORION-ME Georgia Elections and its repercussions on Russia-U. 2013 Georgia. as it would depend on large deployment of land forces in any future combat.2013 missiles and aircraft. but has also reiterated Georgia’s ambition to join NATO and the European Union (EU).INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Russia had brokered a deal. tipped to win presidency. Europe and Caucasia. situated on the crossroads of the Gulf. After independence in 1991. is expected to sign an association pact with the EU. The departure of the President has bought mixed feelings in Russia. Abkhazia and South Ossetia. has promised to rebuild ties with Russia. Russia has also steadily expanded ties with the Lebanese Hizbollah. the Iranians are more willing to reinforce their military bonds with Russia. since this would eventually expose energy-rich Iran. Russia had extended political recognition to Georgia’s breakaway regions and has since set up military bases on their territories. along with Ukraine and Moldova. Georgia elections will be a key to the relationship between US and Russia. when he tried to regain control over the separatist region of South Ossetia in August 2008. post-communist Georgia suffered from civil unrest and economic crisis for most of the 1990s. partly because Western leaders feared that the erratic Georgian leader could drag them into a conflict with Russia.

unofficial estimates put the number much higher. and giving discounts. which have a visa-free arrangement with Russia. at 10-12 million. This has led to violent protests by locals in many Russian cities.Giorgi Margvelashvili has won (62% of the vote) the presidential poll to replace reformer Mikheil Saakashvili. water and industrial park. leaving many European nations that rely on pipelines passing through the country without energy in the middle of winter. SRILANKA U. Egmore. This would also lead to “political and social unrest” and Russia could cease to recognise Ukraine’s status as a sovereign state. Among others. Gas prices are a controversial issue in Ukraine – according to the current government. Thousands of people in Biryulyovo. Local residents had long complaining about the influx of migrants who commit other crimes. Russia has the world’s second largest number of immigrants after the United States. the deal forced Ukraine into paying unfairly http://insightsonindia. related to a gas deal she had brokered with Russia in 2009 when she was Prime Minister). there are over 11 million legal migrant workers and 3 million illegal immigrants. Russia threatens gas war with Ukraine There is a possibility of a new “gas war” between Russia and Ukraine. The case against her has been widely denounced as politically motivated. the ‘master plan’ was ready and it would be completed by early 2015. (The former premier. Japan’s experience in improving port operations can be used in reducing congestion.S.com high prices for gas. including paying for transit of gas across it in advance. Russia had made a number of concessions to Ukraine. wants further & swift probe on Sri Lanka’s HR violations Britain has demanded. all these are part of Sri Lanka’s Lessons Learnt and Reconciliation Commission (LLRC) report.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . SL has to address land issues. It marked the end of U. It is said that Ukraine had overpaid by over $20bn over the past three years for Russian gas. Sri Lanka (SL) will be the host for the next Commonwealth Heads of Government Meeting (CHOGM) to be held in November. However. Anti-migrant riots in Russia The murder of a young ethnic Russian. Page 23
. Viktor Yanukovych. agrees to release Ms. The immediate and short-term plan would be to improve the flow of containers using information technology. Nevertheless. Yulia Tymoshenko. while police took no action. particularly the long queue of container trailers. INDIA-JAPAN Japan’s engagement in India on Infrastructure development Japan International Cooperation Agency (JICA) has come forward to offer assistance to Chennai Port Trust for improving container movement (basically in improving efficiency of the port operations). and has repeatedly warned that by signing the deal with Europe. power/energy.
More about the Project (CBIC): It involves comprehensive perspective planning at corridor level and detailed planning at industrial-node level mainly in the sectors of transportation. was jailed for seven years in 2011 on charges of abuse of office. Saakashvili’s second and last five-year term. mostly from former Soviet states.K. took to the streets protesting against the alleged police inaction in capturing the killer of a 25-year old Russian man. as the Russian state energy giant Gazprom complained that Kiev (Turkey) had outstanding debts of over half a billion pounds and demanded swift payment. The study will cover an area of 560 km across Tamil Nadu. 2013 but the European leaders have asserted that the deal will be possible only if Ukraine’s President. Ukraine will lose billions of dollars and face myriad problems.2013 Victory for PM loyalist in Georgia A loyalist of Georgia’s Prime Minister Bidzina Ivanishvili. Karnataka and Andhra Pradesh. militarization and work towards witness protection. Chennai. Migrant workers are a major source of enrichment for police and other government officials who collect bribes for issuing residence and work permits. ally Mr. This move of payment of arrears is seen as punishment on Turkey for aligning with EU The complaint brought back memories of crises in 2006 and 2009 in which Russia turned off the gas to Ukraine. Ukraine had failed to pay $882m for gas deliveries that were due by October 1 at the latest. Sri Lanka to make concrete progress in investigating alleged war crimes and human rights violations. Other projects: JICA is also funding the ongoing Chennai Metro Rail project and backs the Chennai Port-Maduravoyal elevated four-lane link road project. With regard to Chennai-Bangalore Industrial Corridor (CBIC) project. Tymoshenko from custody. According to official statistics. It was also considering extending assistance for establishing an outpatient tower and purchase of equipment to the Institute of Child Health and Hospital for Children. Russia wants Ukraine to join its own Customs Union of former Soviet states.The move would help the export-import trade plan better and save on time and cost. It will cost around Rs. a district in Moscow. Ukraine is due to sign the association agreement on closer trade links with the EU on November 29. blamed on a Caucasus native (presumably of Azerbaijani origin) triggered massive antimigrant rioting in the Russian capital in a fresh sign of mounting ethnic tensions.37 crore and help arrive at the total cost of the project.

http://insightsonindia. surveillance. Wigneswaran would like Dr. (But taking note of the allegations of human rights abuses during the conflict and problems faced by Tamil Nadu fishermen. There were doubts whether the NASA Space Launch System (SLS) programme will go the distance because of its very high cost and very doubtful purpose. e-mails and internet traffic over 30 days and that the spying included industrial espionage and listening-in to top level government conversations. Wigneswaran has invited Manmohan Singh to visit Jaffna (capital of the Tamil majority province).S. Ashton Carteri. licensing agreements. the rule of law and the independence of the judiciary in Sri Lanka. was also concerned about wider issues – human rights. it was Spain complaining on the NSA’s snooping. This is a crunch time in the region and India’s strategic. suggesting consolidation into a single strategic technology working group. has monitored over 70 million phone calls. and made Mexico the latest in the growing list of nations.2013 In addition to issues over a political settlement in the north.U. over 60 million calls and e-mails of Spain’s citizens. end-use monitoring and related fields. are set to give a big boost to defence collaboration and co-development under the Defence Trade Initiative (DTI) and take it to a new level in areas of technology transfer. India’s role in persuading the Sri Lankan government to hold the Northern Province elections under the 13th Amendment was applauded by the CM. These threats range from reversible to the very destructive. The US military will have to develop technologies to fight through jamming. enemies but its closest allies as well. ISRO’s collaboration with NASA will be a win-win situation for both sides especially in times of US fiscal stress and the capabilities in India. This also shows that Sri Lanka’s Tamil community wants India to remain engaged on issues important to them such as national reconciliation. Singh to engage both in Colombo and Jaffna. However. The NSA’s hacking of the e-mail account of former Mexican President Felipe Calderon drew strong criticism from its Foreign Ministry. several countries have lodged formal complaints with U. security and national interests should come first) (More on Srilanka is covered under ‘National news’ vis-avis Tamil Nadu ) INDIA. license exceptions. Apart from trying to persuade Colombo to provide more autonomy to the Northern Province. Sri Lanka’s Northern Province Manmohan to visit Jaffna Chief Minister invites The remarkable achievements and capabilities of ISRO in launching satellites has had it flooded with offers from all over the world to launch their satellites.S.K. The debut launch of the SLS – now slated for 2017 is likely to be delayed by a year or two because NASA does not have the budget to complete the rocket and its accompanying crew capsule on time. 2013 that the NSA had been spying not just on U. From the documents (received from Edward Snowden) it was revealed that. resilient or resistant antenna designs can help this effort. Ever since Edward Snowden disclosed in June. there is no adequate reasoning given by the U.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Co-development and co-production will become a necessity as competitiveness will demand lower costs and higher quality.V. that were targets of covert U. the TN govt had passed a resolution calling on the Centre to completely boycott CHOGM. its government and legislators were monitored in one month
Sri Lanka’s Tamil community wants India to remain engaged on issues important to them. India is also involved in rehabilitation and resettlement programmes. As envisioned by scientists. Basically. named after US Deputy Secretary of Defence. eight Kg Earth-imaging satellites to replace a constellation of five 156 Kg Rapid-Eye Earth imaging satellites. On the emerging scenario of militarisation of space – though international agreements bar the militarisation of space.S. It has been reported that the U. political devolution of power and resettlement of the displaced. In view of the pressure.S Indo-US defence tie-up set for a major boost India and the U. seeks a review of the various existing bilateral working groups on technology security and export controls. Mexico join the list of critics on U. Mexico and Germany.com
Page 24
.S. Another possible application would be to use a space laser to provide protection against attacks made on own satellites in orbit. there needs to be cautious approach taken in this regard.S. However.S. development of weapons that could be used in space is ongoing. France and Mexico have joined the list of critics. since giving in to sentimental and emotional reasons would not be correct. spying After France. Spain also a victim of U. For example. NASA’s CubeSat programme has been proposed to enable a constellation of 35. the U. National Security Agency (NSA) -mass surveillance and global spying activities. NSA SURVEILLANCE AND AFTERMATH France.S.5 hours rather than the once per 24 hours with Rapid Eye constellation. Mr. Perhaps. Sri Lanka’s Northern Province Chief Minister C. NSA spying After a series of criticisms across the globe over the U. with significantly increased revisit time to enhance surveillance capabilities for military use and GPS.S. Every area of the globe can be imaged every 3.S government. which includes India. ISRO is likely to opt for partnership in various verticals with the private sector that could throw up number of opportunities for both India and US players. On Space Security threat: US satellites are expected to face an increasing number of threats ranging from interceptor weapons to jamming equipment and lasers. The new initiative called the DTI Carter. a space-based laser could send a powerful destructive beam at enemy weapon deployments such as ballistic missile site a few thousand miles away.

S borrowing) until January 15 and puts off the prospect of another debt ceiling breach until February 7. was the only concession made to conservatives in the recent compromise proposal announced in the Senate This is good news for the market (Dow Jones jumped as news of the deal broke). The Europeans are particularly outraged by the ‘casual’ manner in which the U. representative has said that.2013 European leadership has reacted strongly over this issue. Congress a bill proposing curtailments to NSA’s powers was introduced.S.com
Page 25
.S. For instance. Senate deal ends twin crisis Stricter verification of income for those seeking to benefit from the Affordable Care Act(Mr.S. Courtesy – Wikipedia U. freedom of expression. In the U. 2013 when NSA whistleblower Edward Snowden escaped to Hong Kong from the U. Representatives of many countries. representative said that.S. According to a recent report. trade (on how to reach the goal of $15 billion by 2015). Merkel. Earlier in 2012. the NSA’s surveillance program has been used for “targeted killing” using drone strikes.S. the NSA’s eavesdropping on e-mails had led to the killing of Hassan Ghul. Snooping has become an area of concern w. National S ecurity Agency’s (NSA) clandestine surveillance programmes has raised alarm among civil liberties groups and human rights activists. promising to give “full and complete” answers but in effect giving none. more investments would be made in the energy sector.S. spying had actually allowed the foiling of several terrorist attacks on European soil. So India.) Moreover U. 2014..S. they called for a complete ceasefire. aimed at stopping both the NSA’s bulk domestic phone records collection and its searches of foreign communications databases for identifying information on Americans.S. response on ‘Ms. the Brazilian President Dilma Rousseff has announced a plan to host a global meeting on Internet governance in April. is technically perfectly capable of listening to everything everywhere and stocking it. Brazil and other countries are gearing up to work out a strategy on “global governance of the cyberspace” to protect privacy. Though the focus of the conference was on issues like bilateral relations. would also take part in the meet. sovereignty and security of cyber space.
What is USA Patriot Act? Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 An Act to deter and punish terrorist acts in the United States and around the world.S. In the recent meeting between India & Australia. As a large part of India-Brazil trade is focused on mining and oil. NSA’s mass surveillance activities have been exposed. businesses and members of governments. to halt violence and to end all violations of human rights and humanitarian law and also reiterated that “there is no military solution to the conflict and that it is time for diplomacy. both countries have expressed their concern over the unauthorised interception of communications and data from citizens. U. an al-Qaeda associate who provided ‘a critical piece of intelligence’ that had helped the CIA find Osama bin Laden. the two countries also discussed several regional and global issues. infuriated by the spying programmes. and for other purposes. National Security Agency (NSA) appears to be finally giving leverage to changes in the degree of freedom allowed to the shadowy agency to snoop on Internet communications in the name of counterterrorism.t the mass surveillance that was carried out by the U. to enhance law enforcement investigatory tools. And even if the data is not used immediately. Republican Congressman Jim Sensenbrenner of Wisconsin.” introduced the “USA Freedom Act”. What the Deal means? The Senate bill has extended government financing (i. The meeting could be a game-changer for the management of the worldwide web.S. G-4 and G-20. also an “author of the Patriot Act. EU leaders proposed the establishment of a transatlantic code of conduct for such activities.
http://insightsonindia. (But what about the past? Remained unanswered. BRICS.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . National Security Agency (NSA). NSA surveillance supported drone strikes The continuing exposes on the U. on the issue of Syria. There was a cautious approach taken by the EU in this regard since ‘spying on such a massive scale shows that the U.S. India-Brazil on their take on Global Governance Of late. National Security Agency (NSA) -mass surveillance and global spying activities. it is not being monitored and it will not be monitored in future. a key element of the rollout of the ACA. compromising national sovereignty and individual rights.S. Obama’s landmark reform of the healthcare industry).” Brazil to host summit on internet governance With the recent controversy over the U. the French and Germans should be grateful that U.. It can always be used later’. In the House of Representatives.S. has treated these allegations. The U. It also allows for closer review of those who participate in healthcare insurance exchanges. NSA faces surveillance restrictions Whistleblower Edward Snowden’s exposes on covert mass surveillance by the U.r. the German Chancellors phone being tapped’. IBSA. At a recent summit meeting in Brussels.e. Since June. India was also one of the biggest targets of the NSA’s clandestine programmes ‘Prism’. They were particularly shocked over the U. in a drone strike in Pakistan’s tribal belt.

Kenya. Libya. social networking sites. which is “legislation that permits a government agency to continue to operate at existing funding levels if a new appropriations bill to fund its operations has not been adopted by the start of the fiscal year. including the allocation of Top Level Domain (TLD) names.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . 1st 2013. the Central African Republic. Sudan. government shut down is due to the House of Representatives and Senate’s failure to pass a continuing resolution (CR).” The existing system is not reflective or truly representative of the international character or community of Internet users. United States government shut down made news on October. repentance. Why is AU contemplating such a move? The AU feels that. Despite ICC’s global mandate. Check out!! http://www.000 displaced. permanent court that tries persons accused of the most serious crimes of international concern. Mr. it wants all the stakeholders to be involved in its global governance.S. role of Internet intermediaries and cyberterrorism. Since India is committed to protecting. Cote d’Ivoire. namely genocide. The equal opportunity and assured access requires equitable distribution of resources and representative management of the Internet not only in the national sphere but also at the global level.S. and secondly the management of the Domain Name System (DNS).N.There is an awesome article on “U.2013 AFRICA US shutdown in Brief AU: ICC targeting Africans A Governent shutdown basically means a temporary halt in government services when lawmakers cannot pass the necessary funding measures in time. the ICC only tries those accused of the gravest crimes. joined by 122 countries (effective as of 1 May 2013). In all of its activities. The African Union (AU) is contemplating on continent-wide withdrawal from the International Criminal Court (ICC) in the context of the ongoing trial against Kenyan President Uhuru Kenyatta and his Deputy William Ruto. the Kenyan Parliament had also voted to stop cooperation with the ICC.S. the U.S. Kenyatta. Shutdown” under the below link. whereby it controlled entries to the authoritative Root Zone File of the Internet.
More about ICC: The International Criminal Court (ICC) is an independent. healing and forgiveness”. the International Corporation for Assigned Names and Numbers (ICANN) performed two functions – the Internet Assigned Names Authority (IANA). Recently. The jurisdiction and functioning of the ICC are governed by the Rome Statute. Article
http://insightsonindia. for example if formal proceedings were undertaken solely to shield a person from criminal responsibility. It would demand a one-year deferment of Mr. Kenyatta and Mr. the court has opened only eight investigations so far. their proposal would not allow funding of the health care reform law. Security Council to defer the trial. It will not act if a case is investigated or prosecuted by a national judicial system unless the national proceedings are not genuine. ICC has been used as an instrument to target the Africans and would seek immunity from prosecution for sitting heads of state like Mr. search engines. The critics have called for a change in ICC’s approach – from a “simplistic suspect-victim” approach to a comprehensive political and legal package incorporating elements of “truth telling. preserving and safeguarding freedom of expression and Internet freedom and to strengthening them. crimes against humanity and war crimes. In the absence of an integrated and holistic global policy. Every step taken by India to enhance cyber security is conditioned by the commitment to its liberal democratic principles enshrined in the Constitution and as well as ensuring safety and security of its citizens which is the primary duty of any government Under the existing institutional architecture for Internet governance. In addition. control over critical Net resources India has questioned the control of U. justice. For more information. The ICC is based on a treaty. Ruto are accused of orchestrating widespread post-election violence in 2007 in which over 1. Obamacare. The AU has repeatedly called on the Security Council to defer Sudan President Mohammed al-Bashir’s prosecution for crimes against humanity in Sudan’s enduring conflict. all targeted at African nations: Uganda. and recuse heads of state from attending court hearings in person.com/world/2013/sep/30/us-shutdownexplainer-non-americans India questions U. Article 16 of Rome Statute (the framework that underpins the ICC) allows the U. Although the House did propose a CR. According to Kramer (Director of Research at the National Priorities Project). The Security Council’s refusal to consider the request has hardened the AU’s stance on the ICC.theguardian. Mali and the Democratic Republic of Congo. Kenyatta’s case to allow him and his deputy to deal with the aftermath of the terrorist attack in Nairobi earlier this month. The ICC is a court of last resort.200 people were killed and 600.com
Page 26
. contracted entities over critical Internet resources like allocation of domain names and pointed out that the current system needed to be renewed to make the global Internet governance regime truly “multilateral. the ICC observes the highest standards of fairness and due process. transparent and democratic. States were adopting diverse and often contradictory national policies on new and emerging issues such as net neutrality.

thousands of Gazans have been out of work and facing higher prices for products imported from Israel. with a cut in food assistance program. There is a call for restoring of cash assistance to 1. Israel and the United States have not signed on. Egypt has been the second-largest recipient of U. Recently. Now. ‘Night of rescues’ in the Strait of Sicily Nearly 700 refugees including dozens of Eritreans have been rescued off Sicily in five operations. the U. has suspended some military (has temporarily stopped deliveries of tanks. U. and without them. This has raised serious questions about U. These tunnels have for years been a pipeline for cheap fuel. but can still be excused on a “case by case” basis. 2013 by al-Qaeda-affiliated militants has underscored the need for enhancing U. a significant increase from the previous year. ally Israel. report a third of Palestinians in Gaza and the West Bank were “food insecure” in 2012. hundreds of women and children have protested against it. overthrowing former president Mohammed Morsi. Egypt criticises U. a vital global waterway between Asia and Europe. Italian coastguard and navy vessels and a Maltese cargo ship have saved asylum-seekers from five boats in the past 24 hours (From Prelims point of View) The Strait of Sicily is the strait between Sicily and Tunisia. and providing intelligence to partner nations. had cancelled a cash-assistance program that provided 21.com
Page 27
.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .S.S. quietly ramping up military presence in Africa The attack on the Westgate mall in Kenya in September.S. engagement with the African continent. F-16 aircraft and missiles as well as $260 million in cash) and economic aid to the army-backed government in the wake of a crackdown on protesters by the Egyptian regime. Courtesy –ICC Website Kenya Dy-President’s presence needed: ICC The International Criminal Court (ICC) has overturned a decision excusing Kenya’s Deputy-President from attending his trial on charges of post-poll violence in 2007.S. as it borders major U.S. It divides the Tyrrhenian Sea and the western Mediterranean n Sea from the eastern Mediterranean. Many Gazans have already been suffering financially from Egypt’s shutdown of hundreds of smuggling tunnels under its border with Gaza. Almost half of the Gaza population received rations of flour. Egypt has asserted that the country will not surrender to American pressure and will manage its own security needs. That cut prompted days of violent protests that led U. food assistance set off outcry in Gaza According to a U. The ruling could deepen a rift between the court and African leaders and could also set a precedent for Kenya’s President. India.
http://insightsonindia. and Article 63 requires the trial be conducted in the presence of the accused. has focused on providing training. rice and other staples every three months. This move has been strongly criticized by Egypt. aid cut (Military & Economic Aid) Egypt has been engulfed in violent turmoil that has killed over 1. With the exception of high profile commando missions.N. the latest in a growing backlash by Palestinian refugees against the agency that for decades has provided them with nutrition. following a huge protest against his rule. will assist Egypt in countering terrorism activities. the U.2013 27 expressly rules out immunity for Heads of State. whose trial on similar charges is scheduled to start from November. aid after Israel. education and health services. 2013. This means William Ruto must in principle appear at his trial. The surge in militant activity in the region has raised international concerns. out of which 34 countries belong to Africa alone. 2013.S. China. Hitherto. the U.S. However. Cuts in U.S.S. It has been fighting a growing militant insurgency ever since there was a military coup. willingness to provide stable strategic support to Egyptian security programmes amid threats and terrorism challenges it has been facing. However.000 since July. military presence in Africa has attracted relatively little international attention. consumer goods and construction materials. elected representatives and government officials. 122 countries have ratified the Rome Statue.N to suspend its food-assistance program entirely for five days.000 families with $4 million per year. sugar.N. building military capacity of African countries contributing troops to the African-led Mission in Somalia (AMISOM). oil. and strands the Suez Canal. as leaders grapple with the issue of illegal immigration at a European Union (EU) summit. $10 per person every three months.N. Earlier U.500 of Gaza’s poorest families from all quarters in Egypt. like the simultaneous raids in Somalia and Libya earlier in October.S. 2013 the U.

The UN Security Council had strongly condemned the attack. What is AFRICOM? AFRICOM was set up five years ago and has since provided training. Having borders with Rwanda. forces have been facing an upsurge in rocket attacks and bombings by militants ahead of nationwide elections In November. The provinces of North and South Kivu are rich in natural resources. soldiers. known for its rich mining resources. the extension of State authority and the preparation of free. 2013 had drove Islamist groups linked to al-Qaeda out of cities of northern Mali including Gao. has appealed for new efforts by the two sides but raised fears of new conflict and that M-23 was forcing young men among refugee families returning from neighbouring countries to train for fighting. 600 Malians and 300 U. 2013 in the troubled West African nation. This could include the conduct of operations on its own or in cooperation with the Malian defence and security forces. human rights monitoring. Under the terms of the resolution. within its capabilities and its areas of deployment. is the main centre of conflict in the country and of tensions in Africa’s wider Great Lakes region. U. Al-Qaeda-linked militants had declared that they were behind the attack on a United Nations checkpoint in the far northern town of Tessalit. U. the mission would support the political process and carry out a number of securityrelated stabilization tasks. Burundi. Kidal and Timbuktu. Earlier. mission “Minusma” are engaged in a large-scale operation in the Niger Loop (refer the map beside). including some 600 French.N.S. officials who had mediated over the talks. the U. marked by inter-community rivalries and deadly clashes over land.N. which are sought by telecommunications and agricultural sectors. Courtesy – UN website
http://insightsonindia. with focus on major population centres and lines of communication.N. Kivu at the heart of Congo unrest The area of North and South Kivu in eastern Democratic Republic of Congo. protecting civilians. Security Council (UNSC) regarding the deferral of the trial of Kenyan President Uhuru Kenyatta. has urged Kenya to cooperate with the ICC and in the meantime it would look into AU recommendation to the U. the creation of conditions for the provision of humanitarian assistance and the return of displaced persons.N. Troubled West Asian Nation ‘Mali’ and the UN mission French. Kivu has found itself at the heart of the region’s tragedies. an area hugging a curve of the Niger River between Timbuktu and Gao.500 troops were involved. warns of fresh military buildup in DR Congo This is one of those operations that are conducted regularly for stabilisation of the country. U. French forces deployed in Mali were also authorized to intervene in support of MINUSMA when under imminent and serious threat upon request of the Secretary-General. Negotiations in Kampala between the DRC government and M-23 mutineers have been suspended. Uganda and Tanzania. following which the UN mission in Mali requested for more troops.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . envoys have warned of a new military buildup by government forces and rebels in eastern Democratic Republic of Congo (DRC) as peace talks have stalled. coltan and tin. Courtesy Hindu newspaper
What is MINUSMA? United Nations Stabilization Mission in Mali.The United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) was established by Security Council resolution 2100 of 25 April 2013.N. inclusive and peaceful elections. Historical Background: Issue of nationality Since the 18th century Kivu has progressively seen large influxes of Tutsis and Hutus from Rwanda.com
Page 28
.N. and in the early 1980s. This is the first time forces of significant size are working together. About 1. UN and Malian forces are engaged in a major operation aimed at preventing a resurgence of Islamist rebels in Mali. especially gold.2013 On the question of Kenya’s participation in the International Criminal Court (ICC). the regime of Mobutu Sese Seko in what was then Zaire highlighted the issue of nationality to sideline those who came from Rwanda. logistics and infrastructure to countries across Africa with the aim of boosting interoperability between American forces and host countries. A French-led martial in January. The mandate also includes protection of civilians under imminent threat of physical violence and protection of United Nations personnel from residual threats. U.N. The goal of the mission known as “Hydra” was ‘to put pressure on any terrorist movements to avoid their resurgence’. The Malian army and U. that they occupied in the wake of a coup in Bamako(Mali) in 2012. But the rebels have taken to bases in the surrounding mountains and launched strikes on the French and peacekeeping forces.

Rwanda sent troops into the east of DRC.” The group is known for attacking Christians and government targets. The Islamists have killed hundreds of people across the northeast since June. 2013 in the first presidential election after a 2009 coup. The insurgents were integrated into the armed forces under a pact signed with Kinshasa on March 23. experts regularly accuse Rwanda and Uganda. Pakistan. Their Ideology: Boko Haram was founded as an indigenous group. but has also assassinated members of the Islamic establishment.600 lives. the conflict had cost more than 3. and later in the framework of joint operations with Kinshasa in the late 2000s. which occurs also in Yemen. expressing alarm at the persistence of human rights violations against Dalits in India.2013 Kivu experienced a massive influx of nearly one million Rwandan Hutu refugees in 1994 after the genocide of Tutsis. 2013 including a number of students. turning itself into a Jihadist group in 2009. In renewed fighting since last week of October. The army is battling since four-years. not more than 1. Mauritania. The country had plunged into turmoil after current President Andry Rajoelina seized power from President Marc Ravalomanana with the help of the military in 2009. Courtesy. The wars of 1996-1997 and 1998-2003. the EP had passed a similar resolution. Courtesy Wikipedia Madagascar conducts first post-coup vote Citizens of Madagascar for the 1st time voted on 25th October. the resolution(2013) stressed the need to combat discrimination based on work and descent. 2013 the President Goodluck Jonathan had ordered the top military leaders to redouble their efforts following a spate of brutal attacks on civilians. Senegal and Somalia. officially to assure the security of its own regime. north Cameroon and Niger.N. Nigeria. The current toll is certainly much higher. North Kivu was the scene of clashes between the army and insurgent soldiers fighting on the side of former Congolese general Laurent Nkunda in the ethnic Tutsi National Congress for the Defence of the People (CNDP). Damaturu. Founded by Mohammed Yusuf in 2001.It proposes that interaction with the Western world is forbidden. The M23 movement which is estimated by foreign military sources.Hindu Newspaper 74 Boko Haram fighters killed: Nigeria Nigeria’s army has killed 74 suspected Boko Haram fighters in a raid in northeastern Borno state. In 2007 and 2008. 2013. Bangladesh and Sri Lanka. the two top candidates will compete in a runoff scheduled for December 20. of backing the M23.
Who are Boko Harams? What is their Ideology? The Congregation of the People of Tradition for Proselytism and Jihad better known as Boko Haram is an Islamic jihadist militant organisation based in the northeast of Nigeria. Rajoelina EUROPE European Parliament: Caste discrimination a global evil The European Parliament (EP) has recognised caste-based discrimination as a human rights violation and adopted a resolution condemning it and urging European Union institutions to address it. is another area repeatedly targeted by Boko Haram in an insurgency aimed at creating an Islamic state in Nigeria’s mainly Muslim north. 2009.com
Page 29
. In November 2012. to crush the Islamist uprising in Nigeria. In September. and also supports opposition to the Muslim establishment and the government of Nigeria The members of the group do not interact with the local Muslim population and have carried out assassinations in the past of anyone who criticises it. attacking schools and police stations.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . putting a stop to what it deems “Westernization. Last year (2012). U. despite their denials. including Muslim clerics. During these two regional wars.000 fighters — emerged in April 2012 with a mutiny by the former rebels taken into the army under the 2009 deal. driving out Rwandan Hutu rebels grouped within the Democratic Forces for the Liberation of Rwanda (FDLR). fierce clashes broke out between the M23 rebels and loyalist forces in the eastern North Kivu province. According to a report. which involved up to seven African countries on DRC soil. The two front-runners are backed by rivals Mr. The recent resolution has recognised the presence of caste-based discrimination globally and pointed out various forms of caste-
http://insightsonindia. If none of the candidates garners more than 50 % of the votes. as gunmen from the Islamist group battled security forces. including killings by the security forces. The EP consists of 28 member-countries of the EU. started in Kivu. Nepal. the capital of Yobe state. In April 2012. along with rebels from Burundi and Uganda and tribal militias. bombing churches. the M23 took Goma before withdrawing 11 days later following a demand from states in the region and in return for a promise of dialogue with Kinshasa. Acknowledging that caste-affected communities are still subjected to ‘untouchability practices’ in India. 2013 the army has retaken several M23 strongholds in the east. the organisation seeks to establish a “pure” Islamic state ruled by sharia law. which has been broken off on several occasions.

and that forced and bonded labour is particularly widespread in the agriculture. But the talks have broken down because of Turkey’s long-standing territorial dispute with Cyprus. is the main executive body. The EU’s de facto capital is Brussels. affecting an estimated 260 million people worldwide. which represents the member states. work. the Court of Justice of the European Union. Background: Turkey had begun accession talks with the EU in 2005 itself. one of 35 chapters or sets of EU rules and standards that candidate states must satisfy before becoming a member of the EU. Though ‘caste discrimination’ continues to be widespread and persistent.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Composition Institutions of the EU include the European Commission. leading to forced conversions. and travel in any other EU country. 2013 but. The European Parliament is elected every five years by EU citizens. but then postponed the process in protest over Turkey’s spring crackdown.000 young Britons have spent time studying in another European country. abductions. the Council of the European Union. Mission & Objectives: The main aims of the ILO are to promote rights at work. The EU operates through a system of supranational independent institutions and intergovernmental negotiated decisions by the member states. which supply products to a number of multinational and European companies. According to International Labour Organisation (ILO) an overwhelming majority of bonded labour victims in South Asia are from the Scheduled Castes (SC) and the Scheduled Tribes (ST). Apart from caste. mining and garment production sectors. For instance. as well as opposition from major powers France and Germany. which represents the people. The European Commission. the same time as Croatia (which this year became the bloc’s 28th member). to pursue a vision based on the premise that universal.com
Page 30
.
More about EU The European Union (EU) is an economic and political union of 28 member states that are located primarily in Europe. To become a EU members: A country needs to successfully close negotiations on all 35 chapters before joining the EU. which represents the common interest of the EU. study. EU had given ‘in-principle’ agreement in June. The affected communities faced restricted political participation and serious discrimination in the labour market. in the wake of a destructive war. about 100. It has the right to propose legislation and ensures that EU policies are properly implemented. gender and religion.. And Cyprus has blocked eight chapters because of Turkey’s refusal to open sea and air ports to Cyprus. enhance social protection and strengthen dialogue on work-related issues. When it meets at Heads of State or Government level. What are the benefits of joining EU? Trade Benefits: The Single Market of the EU means that companies going about their business in EU member states have been forced to lower the prices of their products to become more competitive. and the European Parliament.2013 related violence against Dalits. Caste-based discrimination was not only a bane to the common man but also among the Diaspora. People movement: European citizens have the freedom to live. The ILO became the first specialized agency of the UN in 1946. it becomes the European Council whose role is to provide the EU with political impetus on key issues. the European Central Bank. 2013 ending a three-year freeze despite Turkey’s crackdown on protests this year. but the lack of protective non-discrimination measures in the labour market and the private sector still adds to exclusion and growing inequalities.
http://insightsonindia. The November negotiations will focus on regional development. Courtesy-EU website
What is ILO? The ILO was founded in 1919. in India. Most of these discriminations go unreported due to fear or threat to their personal safety or of social exclusion. The European Parliament. and sexual abuse by dominant castes. chapter 25 on science and research. especially women. is the EU’s main decision-taking body. Since 1995 alone. a member of the bloc since 2004. lasting peace can be established only if it is based on social justice. affecting Dalit women and women from minority communities. shares legislative and budgetary power with the Council of the European Union. the European Council.e. Structure The Council of the European Union. So far Turkey has closed only one chapter i. mandatory affirmative action has to some extent contributed to the inclusion of Dalits in the public sector. the Court of Auditors. there are multiple forms of discrimination based on caste. despite the governments of some affected countries have taken necessary steps to provide constitutional and legislative protection. forced prostitution. encourage decent employment opportunities.ILO website Resumption of EU’s talks with Turkey The European Union (EU) has agreed to restart membership talks with Turkey in Novemeber. Courtesy.

Totally there are 34 members in OECD. but there is currently no way the island can support its current costs without the subsidy. most are abundant in nature but are hazardous to extract.The Arctic Island wants to use mineral resources to reduce its dependency on a subsidy from Denmark which now accounts for about two-thirds of the island’s economy. the mining activity was banned in southern Greenland. It works with governments to understand what drives economic. The OECD identifies three key factors in considering whether a jurisdiction is a tax haven: http://insightsonindia. and how much leisure time they can take. Denmark is open to allowing Greenland greater independence. country or territory where certain taxes are levied at a low rate or no tax at all.
Nil or only nominal taxes. Also selling of the minerals cannot be done by Greenland alone since Denmark still handles its security and foreign policy. social and environmental change. puts an end to banking secrecy Switzerland.2013 Problems addressed amicably: By working together in the EU member countries can ensure their concerns are heard and taken more seriously. Despite their name.com Rare earths are a group of 17 chemically similar elements crucial to the manufacture of many hi-tech products. Mission The mission of OECD is to promote policies that will improve the economic and social well-being of people around the world. HQ: Paris. Source – OECD website
What do you mean by Tax haven? What are rare earth materials? Its application? A tax haven is a state. a semi-autonomous part of Denmark. And then set international standards on a wide range of things. France. For Example. It also looks into issues that directly affect the lives of ordinary people. from agriculture and tax to the safety of chemicals. the Convention “prepares the way for the automatic exchange of tax information. paving the way for an industrial boom that the Arctic island hopes will help it gain independence from former colonial master Denmark. Greenland.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . It measures productivity and global flows of trade and investment.” This has a huge impact on India and other countries which are fighting against ‘tax havens’ and routing of black money in their economy. The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems. The group consists of yttrium and the 15 lanthanide elements
Page 31
. Lack of transparency.000 tonnes of rare earth metals per year. well known for its anonymous numbered bank accounts and tight banking secrecy became the world’s 58th nation to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. on the international fora. Since uranium is often found mixed into rare earths. Greece being bailed out during its crisis.
What is Organisation Development (OECD)?
for
Economic
Co-operation and
Though the Organisation for European Economic Cooperation (OEEC) was established in 1948 to run the USfinanced Marshall Plan for reconstruction of a continent ravaged by war (Word war-II) it was officially recognized as Organisation for Economic Co-operation and Development (OECD) in 1961. Source – Wikipedia Greenland opens way for mining boom Greenland’s Parliament has agreed to remove a 25-year-old ban on uranium mining. wants to step up its mining of rare earths. An Australian company has estimated it could extract up to 40. Tax havens also provide little or no financial information to foreign tax authorities. Protection of personal financial information. Individuals and/or corporate entities can find it attractive to establish shell subsidiaries or move themselves to areas with reduced or nil taxation levels relative to typical international taxation. this data is analysed and compared to predict future trends. like how much they pay in taxes and social security. Switzerland signs agreement with OECD.

cell phones. as builders began digging under the city. The prisoners were jailed for deadly attacks on Israelis. Soon after this Israel has announced new construction in east Jerusalem — an area the Palestinians demand for their future state. In exchange.Scandium is found in most rare earth element deposits and is sometimes classified as a rare earth element. Israel agreed to the prisoner release.
Significance of the Tunnel:
http://insightsonindia. In future. Started in 2005 and scheduled to be completed in four years. getting 140 meters (460 feet) below the seabed and 240 metres below sea level)
Courtesy. weapons systems. the project was delayed by important archaeological finds. The Palestinians had long refused to resume peace negotiations with Israel unless it ends construction in territories that Palestinians seek for their state. But then Israel had refused.4 kilometres. magnets. Mr. including an underwater stretch of 1. promethium. to connect Asia to Europe Turkey has opened an underwater railway tunnel linking Europe and Asia.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . fluorescent lighting. rechargeable batteries. 2013. In early 2010 China accounted for over 95% of the world’s rare earth production.2013 (lanthanum.6 kilometres long. including security.Hindu newspaper & Geology. The tunnel is designed to withstand a massive 9. The Marmaray tunnel runs under the Bosporus. the strait that connects the Black Sea to the Sea of Marmara and divides Istanbul between Asia and Europe. The building is seen as an attempt by Prime Minister Benjamin Netanyahu to make up for the prisoner release. praseodymium. and other modern technologies. and the two sides of Istanbul. DVD’s. car catalytic converters. the tunnel may become part of a new train route for rail travel between Western Europe and China. Rare earth metals and alloys that contain them are used in many devices that people use every day such as: computer memory. realizing a plan initially proposed by an Ottoman sultan about 150 years ago. MIDDLE EAST & GULF COUNTRIES Israel –Palestine issue continues Israel freed a group of Palestinian prisoners. Japan and the United States are the second and third largest consumers of rare earth materials.com
Page 32
. The East Jerusalem construction move might have an impact on the two states vision. (Japan’s Seikan tunnel linking the Japanese islands of Honshu and Hokkaido is the world’s deepest.5 million passengers a day) particularly over the two bridges linking the two sides of the city.S. The concern fueled protests that swept Turkey in June. should be resolved through negotiations.Google Images WEST-ASIA . 104 Palestinian convicts are to be released in four rounds over the coming months. neodymium. Courtesy . It is among a number of large infrastructure projects under the government of Prime Minister Recep Tayyip Erdogan that have helped boost the economy but also have provoked a backlash of public protest. cerium. China is also the dominant consumer of rare earth elements. insisting that settlements and other core issues. …). In all.0 magnitude quake. The tunnel would ease some of Istanbul’s chronic traffic (estimated upto 1. The tunnel is 13. Earlier in 2013. including a 4th century Byzantine port. for which he has been sharply criticised at home.com Turkey’s underwater rail link opened. as part of a deal to set peace talks in motion. Secretary of State) had managed to persuade Palestinian President Mahmoud Abbas to drop the settlement issue as a condition for restarting negotiations. The projects have provoked charges that the government is moving ahead with city-changing plans without sufficient public consultation. used mainly in manufacturing electronics products for domestic and export markets. Kerry (U.

John Kerry has assured that U. Who are Bnei Menashe? The Bnei Menashe (literally meaning sons of Menashe) tribe trace their roots to one of the 10 “lost tribes” of Jews exiled by the Assyrian regime over 2. In response to this. Under constant threat. 2013. According to the Israeli Premier. Netanyahu.chaired P5+1 group the U. The current engagement with the IAEA. However. This could allay western apprehensions about Tehran’s (Iran) suspected pursuit of nuclear weapons. and shutter the facility that develops heavy water for a plutonium reactor. Iran will establish a production line for enriched uranium dioxide for use in Iran’s lone.S. and lead to further cooperation (Earlier in September. (A Trojan horse is a malicious computer program that users unknowingly install that can give hackers complete control over their systems) While Israel is a frequent target of hackers. Iran. Israel allows Indian Jews to immigrate 899 Indian Jews – the“lost” Bnei Menashe tribe. Spent fuel.S softening stand over Iran. Displeased with the U. a Trojan horse attack had targeted the security camera system in the Carmel Tunnels toll road.000-MWe plant from Russia till 2017. Secretary of State.S. including its water system. Bushehr atomic power plant. Presentation was delivered in English.S. Israel. China and Russia.700 years ago. The immigration of the community would be in multiple groups with the first batch expected by the end of this (2013) year. underlining a positive environment over the issue. Mr. the tunnel is the most high-profile landmark known to have been attacked. it could harness nuclear power under international supervision. trains and banks. This is the first negotiation since Iranian President Hassan Rouhani took office in August. 2013 Prime Minister Benjamin Netanyahu had said Iran and its proxies Hizbollah and Hamas have targeted Israel’s “essential systems”.
Page 33
. causing massive congestion. IAEA discuss framework for nuclear inspections Iran and the International Atomic Energy Agency (IAEA) have kick-started a fresh round of nuclear talks and are currently working on a framework for inspections – which would allow IAEA inspectors to access suspected sites inside Iran. this would comply with the norms of the Nuclear NonProliferation Treaty (NPT). The Israelis fear that negotiation that happened between Iran and the six global powers in Geneva. the Saudis have threatened a fundamental realignment of their ties with U.S. are all set to migrate from India to Israel. The next day it was shut for eight hours. which means that they shouldn’t have centrifuges or enrichment. Russian-built. remove the ambiguities. which has applications in triggering a nuclear explosion.com Moreover.S over its policy shift towards Iran and then Syria. the Russians too have argued with the other global powers that Iran should be allowed to carry out enrichment under supervision. Iran will source atomic fuel for the 1. the U.. It caused an immediate 20minute lockdown of the roadway. Iran must not have a nuclear weapons capability. would answer [the IAEA’s] questions. In three months. Mr. which would rule out the development of an atomic bomb. having made aliyah (immigration) with the help of NGO Shavei Israel. Iran had taken over Bushehr from the Russians in September. Saudi Arabia unhappy with U. Most of them are from Manipur and Mizoram. on Iran outreach Israel and Saudi Arabia has retaliated the U. shut down its underground nuclear facilities. with the military forming its first cyberdefence unit last year. http://insightsonindia. electric grid. Russian engineers would provide backup support for two years. which is dedicated to bringing “lost Jews” around the world to Israel. Israel has emerged as a world leader in cybersecurity. For the first time.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Once Iran complied with these conditions. which can be processed to yield fissile material for a bomb. Iran has denied accusations that it’s Parchin military facility may have been used to carry out high-explosives-testing. Besides. Rouhani has pledged transparency on the nuclear programme to try to get the sanctions lifted. Hundreds of Bnei Menashe are already living in Israel. he warned that a sophisticated cyber attack could one day bring the nation to a standstill. could only curb. with the suspicions of weapons programme out of the way. Iran could be rewarded with the lifting of financial sanctions. Also Iran must ship out its stockpiles of enriched material. following which the facility would fall under independent Iranian control. following talks in Vienna) Iran is keen on success in talks with the West for phased removal of current sanctions. In June. Britain. but not eliminate Iran’s enrichment programme. 2013 Iran had declared its readiness to work out an agreement on nuclear inspections.S would ensure that Iran translates its commitments into action. Recently. will be returned to Russia. would be computer sabotage. France. In return.2013 Israel prepares for another existential threat: cyber attacks The Military chief has said that the greatest threats Israel might face in the future. 2013. plus Germany ends a six-month freeze in negotiations over Iran’s refusal to curb uranium enrichment in exchange for the easing of punishing sanctions. Iran would launch its ambitious programme of atomic power generation along its Persian Gulf and Caspian Sea coastlines. Iran’s nuclear talks with P5+1 begins on a positive note The recent meeting with the European Union (EU). according to an agreement that the two countries have previously signed. of which Iran has been a member.

INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER - 2013 Iran would now allow for snap inspections of its nuclear sites as part of a new proposal . However, it has not accepted demands to suspend uranium enrichment or ship stockpiles of purified material abroad. Iraq attacks kill seven as U.S. pledges aid Saudi Arabia rejects Security Council seat Violence has been on the rise in Iraq since a security crackdown in April, 2013 on a Sunni protest site in the northern town of Hawijah. According to a report, atleast 462 people have died in attacks across the country so far in the October month alone. The U.S pledged $1 million for relocating a group of Iranian dissidents displaced in Iraq. The U.S. decision has come after the United Nations launched a trust fund to cover the cost of moving of 3,174 members of the Mujahedeen-e-Khalq outside Iraq. 62 more killed in Iraq’s continuing ‘war of genocide’ The Iraqi capital Baghdad continues to reel under a fresh wave of car bombing.At least 62 people were killed. Reason behind the War: The Shias were the main targets. These blasts were meant to further inflame the sectarian strife. In the composite social fabric that Iraq has – Sunnis, Shias, Christians and Kurds have been pitted against each other, in the aftermath of the country’ s invasion by the United States and its allies in 2003. Prime Minister Nouri al-Maliki has described this as “war of genocide”. The statistics regarding the mounting death toll in Iraq in 2013 make a dismal reading. More than 5,250 people have been killed in 2013 so far, with 600 perishing in October alone A study undertaken by academics from the US, Canada and Iraq has revealed that war-related incidents have claimed half-a-million lives since the U.S.-led invasion of the country over a decade ago. Syria weapons deadline will be met, says OPCW According to an Organisation for the Prohibition of Chemical Weapons (OPCW) timeline, backed up by a U.N. Security Council (UNSC) resolution, Syria must complete the destruction of its entire arsenal by the middle of next year (2014). The world’s chemical weapons watchdog is confident that Syria will meet an important early milestone in its disarmament, the November 1, 2013 deadline for destroying all equipment used in the production and mixing of poison gases and nerve agents as well as machinery used for filling munitions with mustard gas, sarin or other poison agents. The Syrian government’s co-operation with the 18 of the 23 chemical weapons sites (the remaining would follow) has been appreciated by OPCW. Implications of this move: Saudi Arabia has rejected a rotating seat at the Security Council, as a mark of protest against the perceived inaction by the world body against Syria. Saudi Arabia had for the first time been elected by the General Assembly to become a non-permanent member. The monarchy being a staunch supporter of military action to topple President Bashar al-Assad said the Security Council is incapable of tackling international conflicts. The method, work mechanism and the double standards in the Security Council prevent it from properly shouldering its responsibilities towards world peace. Another reason was UNSC had also failed to settle the IsraelPalestinian issue and the Council’s inability to turn West Asia into a zone free of weapons of mass destruction — an apparent reference to Israel’s alleged stockpile of nuclear, chemical and biological weapons. Russia, which has stood against regime change in Damascus was surprised by Saudi Arabia’s unprecedented decision responded strongly saying that The kingdom’s arguments arouse bewilderment, and the criticism of the U.N. Security Council in the context of the Syria conflict is particularly strange. Saudi Arabia’s decision follows the recent UNSC resolution backing a Moscow-brokered deal that commits Syria to destroying its entire stockpile of chemical weapons to avoid possible western military strikes. Saudi Arabia slammed the move, which has allowed weapons inspectors to move into Syria to tally and destroy the Assad government’s arsenal of chemical weapons. Riyadh is also widely perceived as a major supporter of armed fighters battling the Assad regime. WHO polio report spurs calls for “vaccination ceasefire” in Syria World Health Organisation’s(WHO) report on ‘several cases of polio’ (in Syria), has resulted in call for a “vaccination ceasefire” between government forces and the armed opposition, engaged in fierce fighting The WHO has confirmed 10 cases in Dier al-Zour, where government forces and opposition combatants are fighting to establish full military control. This has prevented humanitarian interventions by health workers, triggering anxieties that the highly contagious virus could rapidly spread to the rest of Syria and beyond. Syria had been free from the ailment since 1999, but after the recent occurrences, nearly 1,00,000 children, under five, are susceptible to polio in Dier al-Zour alone. Caught in the crossfire of violence and its fallout, Syria and its seven neighbours have announced emergency plans to carry out vaccinations on a war-footing. From now on, Syria will no more have the capability to produce chemical weapons. And also they will no longer have working equipment to mix or fill chemical weapons into munitions. Norway too has confirmed to follow suit by considering a request to accept the bulk of the stockpile for destruction on its territory.

http://insightsonindia.com

Page 34

INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER - 2013 The international children’s charity, Save the Children, has issued an appeal seeking “pauses in fighting to allow vaccination campaigns to take place across both sides of the conflict According to WHO, ‘the Syria outbreak could be from Pakistan; before this, the virus from Pakistan was found in Egypt, Palestine and Israel. Pakistan was responsible for the international spread in 2011 and the virus from Pakistan caused an outbreak in western China’. Pakistan had over 20,000 cases of polio before the WHO started its immunisation programme in 1994 but after that the cases were brought down to 2000. Ever since Taliban leader Hafiz Gul Bahadur’s ban in June 2012, the areas in North and South Waziristan (Pakistan) have become out of bounds for vaccination teams. Following the ban 2,61,000 children in North and South Waziristan could not be reached. The only remaining reservoirs of wild poliovirus type 3 (WPV3) in Asia are in the Khyber Agency and FATA (Federally Administered Tribal Areas) in Pakistan. The WHO has also warned that polio in Pakistan poses a significant risk to neighbouring countries all of which, except Afghanistan, are polio-free. The Middle East Respiratory Syndrome Coronavirus (MERS—CoV) has so far claimed 62 lives worldwide, with most of the deaths occurring in Saudi Arabia, where the disease first appeared in September 2012, according to the WHO. The WHO said last week there was a total of 144 confirmed cases of the respiratory disease worldwide India for greater engagement in the West India and Peru are looking forward to start negotiations on a freetrade agreement (FTA) On this occasion, the Vice-President Hamid Ansari launched INCHAM, the Indian Chamber of Commerce in Peru. The chamber will help Indian businesses that want to engage in trade and industry (invest) with Peru and neighbouring Latin American countries. Although an FTA is still in the conceptual stage, the development is seen as a sign of India’s widening economic engagement with Latin American countries. There are already positive signs over the finalization of Bilateral Investment Promotion and Protection Agreement (BIPPA). The official website of INCHAM (www.incham.pe) was also launched on the occasion INCHAM which will provide information services and advisories and act as a bridge between the businesses and the governments of the two countries. Trade relations hitherto: Over the past six months, only one case due to this strain was reported worldwide (from Yobe, Nigeria, on 10 November 2012). These are the lowest ever recorded levels of WPV3 transmission. If WPV3 is eradicated completely, then it would be the second wild poliovirus strain to follow suit. The Wild poliovirus type 2 (WPV2) was eradicated in 1999 (WPV1 & WPV3 is yet to be eradicated). The danger with WPV3 is that it is less virulent than WPV1.It causes cases at a rate of approximately 1 in 2,000 infections, compared with 1 in 200 infections for WPV1. Causing fewer cases is a good thing, of course, but it also means that the virus can transmit more widely and longer, without being detected. “It’s a sneaky virus, in that sense, so one has to be more cautious. The other challenge is that the last known remaining WPV3 reservoirs (Khyber Agency, and Borno and Yobe states in northern Nigeria), are areas where access is compromised due to insecurity. The world has a unique opportunity to get rid of the second strain of wild poliovirus. It would be a significant milestone for the global eradication effort, and would have significant operational benefits. Courtesy – http://www.polioeradication.org Oman detects MERS infection Oman has discovered the first case of the MERS coronavirus in the Gulf sultanate. http://insightsonindia.com Bilateral trade between the two countries went up sevenfold in the last five years. Last year, the growth was 35 %; and in the first six months of 2013, trade rose 44 %, as Indian companies showed keen interest in Peru’s gold mines. Delegation-level talks would also include defence cooperation and cultural exchanges. India denies charge of involvement in illicit nuclear trade It has taken steps to ensure harmonise export, procurement lists with those of NSG Institute of Science and International Security (ISIS) report has categorized India with half a dozen countries, including Pakistan, China, North Korea and Syria as “illicit nuclear trade suppliers of concern.” Such charges could hurt India’s bid for membership in four nuclear export control regimes. India is working on the issue, to convince members of these organisations because it has not signed a prerequisite for membership — the Nuclear Non-Proliferation Treaty (NPT) and does not plan to do so in the near future. What is India’s stand on the Issue? India has refuted charges of involvement in covert nuclear trade, saying that a single suspect case of export of a dual use item to Iran was due to difference in perception. Firstly, the case pertains to an Indian company sending four shipments of valves that finally made their way to Iran’s Arak Page 35

Is Wild PolioVirus type 3 (WPV3) strain on the verge of eradication?

INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER - 2013 Heavy Reactor. The company was within its rights not to seek a licence because its valves had nickel content of 10 to 15 %, whereas a licence is required for nickel content of over 60 %. This provision is identical in the India’s Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) and the NSG lists. Secondly, the valves were exported to Germany and Turkey, both NSG members and legitimate export destinations. This aspect underlines the need for greater cooperation between transit countries such as Turkey and countries with high-tech capabilities of which India is one, because these countries are beginning to become targets of procurement to legitimate destinations. Also, one would have presumed that Turkey being a part of North Atlantic Treaty Organisation (NATO) would also have done some careful examination before importing from India. Since the past decade, India has taken several steps to ensure that “nothing slips the licensing list.” These include harmonising the export and procurement lists with those of the NSG and the Missile Technology Control Regime(MTCR), implementing all the UNSC resolutions on Iran, North Korea and Syria, an extensive overhaul of own processes and out-reach to the industry and improved coordination between licensing and implementing agencies. India also has enacted the Weapons of Mass Destruction (WMD) Act that gives authority to intercept suspect shipments of goods besides services and technology. It has taken India 10 to 15 years of sustained effort to get back into the civil nuclear mainstream and working with regulators. So this categorization of India into ‘illicit nuclear trade supplier’ is unreasonable or farfetched. November 11, as the extension of the date will give rise to yet another unprecedented situation in the island nation’s five-yearold tryst with democracy. Earlier, the Maldivian Supreme Court had arrogated to itself all decisions on holding of the presidential election. It cancelled the first round of polling, announced October 19 as the fresh date, and in the latest order, called for the re-registration of voters. The last order has created an air of uncertainty over the proposed holding of fresh elections. Why is India concerned? Since Maldives could be in a situation where the judiciary would be amending terms of the Constitution, which is really a parliamentary prerogative. The Constitution does not envisage the vacuum that could emerge if elections are not completed by November 11, by when the current incumbent’s highly-contested term would be over. Both India and the United States have voiced their views about the court’s interventions in Maldives citing that continued legal actions could further delay the election and, possibly, prevent ousted President Mohamed Nasheed from contesting. Paris celebrates Indian cinema The Musée Guimet in Paris, the world’s best-known museum devoted exclusively to Asian art, brings its 10th Indian Summer cinema festival to a close, marking the end of a two-month-long celebration of India’s century-old love affair with films (It was also the 100th anniversary of Indian cinema). The fest concluded with showing Shyam Benegal’s film Bhumika. It’s about the story of a strong Indian woman, Hansa Wadkar, and it was at the same time a homage to Smita Patil, the film’s extraordinary heroine. The festival has screened a vast panorama of Indian films since September, especially landmark pictures like Dadasaheb Phalke’s earliest fictions made as of 1913, Mother India, Aawara, Sholay, Mughal-e-Azam, films from Bengal, Kerala, Tamil Nadu and Bollywood. Shyam Benegal, whose cycle of films chronicling the lives of Muslim families in India including Mammo , Zubeida, or Well Done Abba were screened along with his more political work like The Making of the Mahatma (Paris held a particular fascination for him). The Director, (himself, was a parliamentarian) is currently working on a ten-part mini-series on the making of the Indian Constitution. The mini-series would give more insights on Indians’ knowledge of Constitution, which is both a stable foundation and a guide for our democracy and how it should be practiced

More about the four nuclear export control regimes? The United Nations Security Council (UNSC) Resolution 1540, the 2005 India-United States (US) Civil Nuclear Initiative—which resulted in the 2008 India-specific waiver in the Nuclear Suppliers Group (NSG) guidelines And the 2010 India-US joint statement, re-defined India’s relationship with the global export controls system. Of these, the November 2010 joint statement issued during President Obama’s visit heralded India’s new rendezvous with the key element of the global export controls system. The Statement endorsed India’s candidature for the four multilateral export controls regimes—the NSG, the Missile Technology Control Regime (MTCR), the Australia Group, and the Wassenaar Arrangement. These regimes have emerged as the leading forums of the global export controls system and are the oldest multilateral bodies for export controls. Though these are small informal groupings, they derive their importance from the nature of their membership. Most of the major suppliers of high technology or sensitive technology, mostly dual use in nature, are members of these regimes. Courtesy – idsa website India hopes Maldives will complete polling by Nov. 11 Amid fresh judicial intervention ahead of the presidential election, India hopes that Maldives will be able to complete polling by http://insightsonindia.com

Page 36

the state shall endeavour to promote their autonomous functioning. as such. democratic control and professional management of cooperative societies. Political Parties under RTI ambit? Background: On June. The accused had killed his nephew. The CIC directive was opposed by the political parties with almost absolute consensus. the public authority or the officer concerned is not legally obliged to provide that information. as elements constituting a multiparty system which is an inherent part of the basic structure of the Indian Constitution. cannot be said to be providing funding to a substantial extent. his daughter-in-law and five-year-old grandson. Present Situation: Recently even the Attorney General G. one must bear in mind that. On the basis of this reaction. There needs to be a balance between the brutality of the crime and punishment. the Madhya Pradesh High Court had awarded death sentence to a person in a ‘triple murder case’. political parties cannot get away from the duty of transparency as easily as other NGOs. However.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . But the matter was referred to the Standing Committee in view of public sentiment against the political parties’ refusal to subject itself to scrutiny. unless the record shows that the funding was so substantial to the body which practically runs by such funding and but for such funding. The rationale behind this rule is that: “The powers exercised by the Registrar of Cooperative Societies and others under the Cooperative Societies Act are “only regulatory or supervisory” and will not amount to dominating or interfering with the management or affairs of the society so as to control it. which have individuals as members from such categories The provisions are made such that it will enhance public faith in the cooperative institutions by insulating them from avoidable political or bureaucratic interference.com
. it has included Article 43B. forming of cooperatives has become a fundamental right (Article 19 (1) (c)) and under Part IV of the Constitution. 2013 the Central Information Commission (CIC) had directed all six national political parties to appoint public information officers (PIOs) within six weeks. 2013 judgment. it would struggle to exist. exemptions. citing that this does not fall under the “rarest of rare case”. case The case is of prime importance since the term “substantially financed” by the government needs to be clearly defined by the SC in making any further move to bring the resisting political class’ under the RTI’s ambit. Page 37 The Parliamentary Standing Committee on Personnel. the Government has its own reasons..
http://insightsonindia. Earlier in the October. citizens can’t have access to it. Supreme Court (SC) on Capital Punishment In a recent case. the law has put in a lot of safeguards to protect the right under Section 8(j) of the RTI Act Moreover. The 3 bench Judge have stated that. political parties should abide by the CIC’s order and has opposed the Bill pending in the parliament which seeks to keep political parties outside the ambit of RTI.2013 NATIONAL Cooperatives does not come under the ambit of RTI: Supreme Court The Supreme Court (SC) has held that Cooperative societies will not come under “public authority” as defined under Section 2(h) of the Right to Information (RTI) Act and hence are not liable to provide information to the general public under this law. privileges etc. the government had decided to amend the RTI Act and even the Cabinet had cleared this amendment.” The above judgment would support the political parties’ claims of being private bodies and would likely provide an escape route to political class from CIC order. Recognizing that the right to privacy was a sacrosanct aspect of Article 21 of the Constitution. the Court had defined the term ‘substantially financed’ as. If the political class comes under the RTI ambit then it would hamper their smooth internal functioning as this would open up political parties to petitions regarding their decision-making process as well as expose them to harassment. And this (substantially financed) was the rationale provided by the CIC for bringing political parties under the RTI. Vahanvati has said that. as they all have at some point of time received funding from the government. According to the SC ‘Brutality cannot be the only criterion for awarding death” and it has also cautioned other courts to act with utmost responsibility. Government’s argument: However. if the information sought for is personal and has no relationship with any public activity or interest or it will not subserve the larger public interest. and opposition from some political parties.E. Significance of 97th Amendment Act (AA): With the coming of 97th AA.” If the information is not under control of public authority. Due regard must be given to the ‘nature of the crime’ such that the punishment is not disproportionate nor inadequate since in either case it would not do justice to the society. Public Grievances scrutinizing the Right to Information (Amendment) Act (RTI) with regard to the question of bringing political parties within its ambit will be looking forward at the Supreme Court(SC) judgment in the Thalapalam Service Cooperative Bank Ltd. “In a civilised society a tooth for a tooth and an eye for an eye ought not to be the criterion to clothe a case with ‘rarest of the rare’ jacket and the courts must not be propelled by such notions in a haste resorting to capital punishment”. grants. It also provides for reservation of one seat for the Scheduled Castes or the Scheduled Tribes and two seats for women on the board of every co-operative society. “Merely providing subsidiaries. But the SC has commuted death sentence into life imprisonment.

the Leader of the Opposition in either of the Lok Sabha or the Rajya Sabha or his nominee. is an important tool to reduce under-five mortality in India. What is pentavalent vaccine? Its significance? The pentavalent vaccine simultaneously provides protection against the five life threatening diseases — Diphtheria. Why is BCI opposing JAC Bill? According to BCI. The pentavalent vaccine was recommended by NTAGI in 2008 to be added to the universal immunisation programme. Suggestion from the BCI: Instead it has suggested a Central Advisory Committee comprising the Prime Minister or his/her nominee or the Union Law Minister. Tamil Nadu.K. A call for increase in Pentavalent vaccine The National Technical Advisory Group on Immunisation (NTAGI) has recommended the scale-up of the pentavalent vaccine across the country. However. Karnataka. The DPT (Diphtheria. Pertussis. This vaccine was introduced in a phased manner since 2011 in Kerala. Puducherry. Tetanus. the constitution of NJC would interfere with the independence of the judiciary and also affect the basic structure of the Constitution as appointments would be made by the executive. as members. The pentavalent vaccine. the CJI and the Leader of the Opposition in the Lok Sabha. Gujarat. The Bill provides for constitution of a National Judicial Commission (NJC) for appointment of judges of High Courts and the Supreme Court. Safety issues: The pentavalent vaccine in Sri Lanka. If this system was adopted. The Supreme Court had evolved the collegium system through its judgment in 1993 and reaffirmed it in 1998. the statement added. which causes severe pneumonia. U. Jammu & Kashmir and Delhi.com
Page 38
. Pertussis. Restriction on Antibiotics sale India has taken necessary steps to curb ‘over the counter’ sale of antibiotics and anti-tuberculosis drugs to keep a tab on ‘drug resistance’. There was also opposition to the 120th Constitutional Amendment Bill to amend Articles 124 and 217 on appointment of judges. The existing collegium system has been functioning well. Protection against Haemophilus influenza type B (Hib). Legal backing: As per the Chennai Declaration ‘restricted sale of antibiotics’ was one of the main recommendations. a representative of the Bar Council of India and a representative of the Supreme Court Bar Association. In India. So anything which affects the ‘basic structure of the constitution’ would be void. is a new addition. an ex officio chairperson. Even private practitioners have been using the pentavalent vaccine and there are no adverse effects reported. Haryana. the Union Law Minister and two eminent persons.2013 The SC has held that number of deaths or that the whole family being wiped off cannot be the sole criteria for determining whether the case falls into the category of ‘rarest of rare. which is being used in 188 countries.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . With the proposed national scale-up and the report from the national AEFI committee (stating its safety & effectiveness). the National AEFI (Adverse Events Following Immunization) Committee has submitted a report that the recent deaths in Kerala following pentavalent vaccine administration were not a side effect of the pentavalent vaccine. The Secretary in the Department of Justice in the Law Ministry will be the convener. The constitution has provided for Independence of Judiciary. Hepatitis B and Hib (Haemophilus influenza type b). Tetanus) and Hepatitis B are already part of the national routine immunisation programme. one representative each of the State Bar Council and the High Court Bar Association. the Attorney-General or the Solicitor-General. the collegium procedure would be more transparent. Bhutan and Vietnam was briefly suspended to investigate concerns over a few deaths. The government recently added a new provision in the Drugs and Cosmetic Act 1940 that will seek
http://insightsonindia. Separation of powers is the considered as the basic structure of the constitution. Goa. the government then had not sought any clarification or review of the system and had introduced the two Bills despite strong objections voiced by the Bar. the Advocate-General. two Supreme Court judges next to the CJI in seniority as ex officio members. it needs to be more transparent and the mechanism of the appointment procedure should be strengthened. the Leader of the Opposition in the Legislature. meningitis and other life-threatening conditions in children less than five years of age.’ Aversion to the Judicial Appointments Commission Bill The Bar Council of India (BCI) has urged the Union Government to withdraw the Judicial Appointments Commission (JAC) Bill. Judicial Independence is vital and based on the doctrine of separation of powers. Earlier the Supreme Court (SC) had issued a notice on the same to the Centre based on a Public Interest Litigation (PIL) alleging that the vaccine had serious adverse effects on children. along with activities to check for potential adverse effects. The committee might be formed by the Supreme Court itself to aid and advise the collegium for appointment of Supreme Court judges. the poor families will be the most benefited because of its outreach and easy affordability. At the High Court level the advisory committee to advise the High Court collegium would consist of the Chief Minister or his/her nominee or the Law Minister. to be nominated by the collegium consisting of the Prime Minister. but has since been re-introduced in all of these countries. hails this move saying that it will protect the integrity of lifesaving treatments. The JAC Bill provides for constitution of the JAC comprising the Chief Justice of India.

but the second best option. The whole system of clouds and wind spins and grows. Odisha. with very low air pressure. warm. C-130J Super Hercules and the Antonv-32.N.2013 to ensure antibiotics and anti-tuberculosis drugs will not be sold over the counter from March 1.N. besides building a modern capital for the divided Andhra Pradesh. The GoM would take the opinion of stakeholders on all important subjects while formulating its recommendations and the whole approach would be basically based on Justice B. the implications for the other two regions also cannot be ignored. presided over by the Home Minister Sushilkumar Shinde was setup to “discuss the approach and methodology” to be adopted for the bifurcation of Andhra Pradesh and creation of Telangana. it leaves is less air near the surface. Way Forward: The Union Government might consider giving a special financial package to the Seemandhra region. Separation is recommended only in case it is unavoidable and if this decision can be reached amicably amongst all the three regions. moist air rises and cools the water in the air forms clouds. Considering all aspects. What was the recommendation of Justice B. fed by the ocean’s heat and water evaporating from the ocean surface. It is very calm and clear in the eye. Disaster Management: Cyclone Phailin The very severe cyclonic storm Phailin is expected to hit the coasts of Andhra Pradesh. a mandatory warning will be displayed on the antibiotic packaging and the antibiotic can be sold only on production of prescription. What are cyclones? The Indian Air Force (IAF) has deployed 24 aircraft. And the cycle continues… As the warmed. So basically as the warm air rises. As the storm system rotates faster and faster. it would also throw up several other serious problems. It was also noted that. it causes an area of lower air pressure below. it can be caused either human or nature. West Bengal and the Government is taking precautionary measures to mitigate the disaster. along with 18 helicopters. Srikrishna Committee report? The Srikrishna Committee report was submitted in 2010: After taking due consideration and analyzing the issue. Srikrishna Committee report. Disasters are events that are sometimes unpredictable. The Navy is ready with its fleet of choppers to carry out rescue operations What do you mean by Disaster Management?
http://insightsonindia. Hence a holistic approach needs to be taken by the respective government’s in order to put an end to the threat on public health. To form a cyclone. Government on its part – makes laws. an eye forms in the centre. The GoM would try and address all concerns related to social and infrastructure development in the coastal Andhra and Rayalaseema regions to pacify protesters. allocates resources and does proper planning and sustainable development to mitigate the disaster. moist air over the ocean rises upward from near the surface. Air from surrounding areas with higher air pressure pushes in to the low pressure area. Group of Ministers (GoM) on Telangana issue The Group of Ministers (GoM). How are tropical cyclones (Cyclone Phailin) formed? Tropical cyclones form only over warm ocean waters near the equator. It will be the duty of the Chemists to keep a record of the patients and the prescriptionists. Why such a move? Drug resistance has become the latest threat world-wide. Recently one can recollect the issue on ‘NDM1’. It poses threat to human life and property or leads to large scale disruption of normal life. the infection caused by these drug resisting bacteria is difficult to treat. Hence it is important for any government to manage disasters. As this air moves up and away from the ocean surface. circular fluid motion rotating in the same direction as the Earth. According to the law. This is usually characterized by inward spiraling winds that rotate anti-clockwise in the Northern Hemisphere and clockwise in the Southern Hemisphere of the Earth. Then this new “cool” air becomes warm and moist and rises. 2014. too.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .com
Page 39
. The armed forces have been put under high alert The National Disaster Response Force (NDRF) has deployed around 500 personnel to carry out relief and rescue operations Cyclone Scales Classification – IMD Courtesy – Google sites A cyclone is an area of closed. Higher pressure air from above flows down into the eye. the committee felt that while the creation of a separate Telangana would satisfy a large majority of people from the region. the committee did not see creation of Telangana to be the most preferred option. including Ilyushin-76.

Maharashtra and Madhya Pradesh. The policies prior to 1991 have been institutionalized and it is difficult to demolish such institutions. The NDMA was constituted to lay down the policies. ITBP and CISF). It has been widely reported in South Chhattisgarh that the NMDC’s Bailadila mine has been dumping thousands of tonnes of iron ore fines into the Indravati. Accordingly.com
Page 40
. Odisha.B. Re-engineering or redesigning of institutions is needed to address challenges facing the policy. it will not be able to conduct detailed hearings in three of the States listed in its terms of reference — Chhattisgarh. The FAC was imposed on freight charges as well. This realization led to the enactment of the DM Act on 26 Dec 2005. NCP broadly refers to government measures.2013 With Railways’ finances and projects still stagnant. Close to 500 villages or 3 million people stand to be affected by mining and would lead to large scale displacement in Bastar (Chhattisgarh).
What is NDRF? Two national calamities in quick succession in the form of Orissa Super Cyclone (1999) and Gujarat Earthquake (2001) brought about the realization of the need of having a specialist response mechanism at National Level to effectively respond to disasters. policies and regulations aimed at controlling the behaviour of enterprises and structure of markets. Now. The Commission was set up in response to the growing number of cases of illegal contracting. website National competition policy in the era of LPG (Liberalization. for the first time. This has led to widespread protests across the country especially the tribal areas. Why such a policy? State-Market debate has been in the news ever since the Government of India (GoI) adopted its liberalization policy in 1991. 2013. Globalization) In the current scenario. The DM Act has made the statutory provisions for constitution of National Disaster Response Force (NDRF) for the purpose of specialized response to natural and man-made disasters. Courtesy NDRF govt. It has. CRPF. Cabinet has decided on constituting ‘Rail Tariff Authority’ Prime Minister earlier in the year (2013) had directed the Railways to put up the constitution of a Rail Tariff Authority so that the body could automatically take note of the volatility in the prices of fuel and other inputs and make recommendations for adjusting the fares accordingly. the chairman of Competition Commission of India (CCI) Ashok Chawla has called for adoption of a National Competition Policy (NCP) to help address entry barriers in public and private sectors. the Railway Tariff Authority has got a backing through the executive orders as desired by the Cabinet to avoid the delay in the legal process. Why the protest from Tribals? The panel’s probing has led to the closure of hundreds of illegally operating mines. Way back in 1990 itself. freight and passenger fares are set to rise with this decision. A plea for reinstating the Shah Panel The Shah Commission will be prematurely dismantled even before its investigations will be completed on October 16th. The policy paradigm in the liberalised era still has a tilt towards control by the state. The Railways. decided to submit an “elementary” report about the “un-probed” States on the basis of its preliminary findings.
http://insightsonindia. Privatization. plans and guidelines for disaster management.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Shankhini and Dankini rivers. the Ministry of Home Affairs (MHA) has envisaged a plan to go for massive rubber plantation in Chhattisgarh. While competition in markets will be monitored by the CCI. however. Hence the need for a NCP! The NCP would lead to more robust economic welfare and provide good governance to the country. Though operations by security forces are going on against Maoists. the Union government’s Science and Technology cell had reported that the National Mineral Development Corporation’s mining activity and release of effluents “had damaged not just the rivers but also 35. The tribal chiefs of Bastar (in Chhattisgarh) have requested the Centre to reinstate the panel. Development strategy to counter Maoists: Way to go! Following the success of the North Eastern region in transforming militants by investing more on various agriculture and horticulture projects to transform militants. Jharkhand. the need of independent agencies to review such policies to make them competition compliant and more relevant is the need of the hour. in 2006 NDRF was constituted with 08 Bns (02 Bn each from BSF. . with the ceasing of the Commission. Andhra Pradesh and Maharashtra. including one of the nation’s largest iron ore mines in Bellary. rules and regulations need to be reviewed through implementation of the competition policy.000 hectares of agricultural and forest land around Bailadila” Now. had increased passenger fares midstream by way of fuel adjustment component (FAC) recently. Why was Shah Commission set up? Justice M. Shah Commission of Inquiry was set up by the Ministry of Mines in 2010 to look into illegal mining in seven States. Earlier the commission was extended twice – in 2012 and early 2013. giving better livelihood opportunities to Naxals in their backyard would help them shun violence and lead a normal life. anticompetitive outcomes of government policies. flouting of royalty payments and encroachments on public lands by mining operations across the country. Thus.

In addition to providing effective means of livelihood. any raise in tariff on power from the Mundra project would lead to an additional burden on consumers. The moratorium on mining in most parts of the two districts of Maharashtra – Sindhudurg and Ratnagiri would be removed since the panel has found that most of the areas of the two districts fall outside the demarcated forest zone which is to be declared as the ESA. prior consent from the gram sabhas and strict adherence to the Forest Rights Act would be made mandatory for any of the projects that are not on the negative list. Within the ESA. Going with the recommendations of later. 1986. Townships and buildings over 20. including those on maintaining ecological flows in the rivers.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . fragmentation of forests and human population density to demarcate these forest patches that would turn into a no-go zone for mining. This too would be done after studying cumulative impacts of the projects in the region. The CERC had earlier asked the States buying power from the two Mundra projects to respond to a tariff hike recommendation made by a panel headed by Deepak Parekh. Kasturirangan’s report. The type of industries banned would be those included in the ‘red list’ issued by the government under the Environment Protection Act. The decision was taken on the lines of Madhav Gadgil and K. Cultivation of rubber with its high returns and productivity can prove to be an effective tool for minimising militancy and extremism as it would motivate the militants to engage themselves in this highly remunerative activity. Gujarat. ranging over 1. The move is likely to have an adverse impact on tariff revision for the 4. The Arms Act of 1959. is an act of Indian law to consolidate and amend the law relating to arms and ammunition to curb illegal weapons and violence using illegal weapons. There was also controversy around air guns to be included as part of http://insightsonindia. the most recent being in 2010 through an amendment for the arms act.000 square kilometres of the Western Ghats across six States (Gujarat. Haryana and Punjab governments have seriously questioned before the Central Electricity Regulatory Commission (CERC) move to hike power tariff based on the report of the Deepak Parekh Committee. Why rubber cultivation/ Impact of rubber cultivation? The rubber cultivation has turned out to be a major success story in rehabilitating militants and transforming them into rubber planters in the North East (Tripura and Assam). All other projects would be allowed only with the prior consent of gram sabhas (village councils) in the zone. Karnataka.
3)
The above recommendations were approved. while the Haryana government will not purchase power from the project if tariffs are raised this act which was rejected by supreme court of India.500 km linear distance from the Tapti river in the north to Kanyakumari in the south. the hill areas with high population densities be kept out of the ESA ambit. Hydroelectric projects would be permitted in the ESA but with a new set of strict regulations that the Kasturirangan panel has recommended. Kerala and Tamil Nadu) into an Ecologically Sensitive Area (ESA).e.in/newsite/erelease.. Decisions taken in line with the panel: Three criteria that the panel had recommended: 1) 2) the use of biodiversity richness. Maharashtra. the Ministry has decided to declare the ESA over 37% of the Western Ghats under the Environment Protection Act. thermal power plants and polluting industries over the entire range.
Arms Act Arms Act was mentioned in today’s newspaper.The decision on the 163-MW Athirapally in Kerala and 400-MW Gundya in Karnataka to be deferred.aspx?relid=63268 A third of Western Ghats to get protective cover The Environment Ministry has decided to turn approximately 60. These are usually considered to be the most polluting of the lot. For more info view the below link: http://pib. but nothing significant so we have put only details related to Arm’s Act. The area will turn into a ‘no-go zone’ for mining and thermal power plants i. The Punjab government has said that.000 square metres in the region too would not be allowed. Goa. while helping in the eco-restoration of barren cultivable land by creating a forest cover in the area.620-MW mega power project of Adani Power also at Mundra. rubber plantations can also support social and economic development of local communities. banning mining. Rubber cultivation is akin to the traditional occupation of farming and can be easily adopted in the region.com
Page 41
. thermal power plants and other dirty industries.000-MW Mundra ultra mega power project of Tata Power and the 4. quarrying.2013 The scheme would be on the lines of the Udaan employment generation scheme for youths in Jammu and Kashmir that is being funded by the MHA. The act has undergone many changes since 1959. The Western Ghats now would become the largest protected forests in India. The Parekh committee had recommended a compensatory tariff of 45-55 paise per unit for Tata Power’s Mundra UMPP and up to 60 paise per unit for Adani Power’s plant in the same area. Both projects have a huge component of imported coal and they have filed a petition before the CERC for tariff revision citing a massive rise in costs of coal being imported from Indonesia due to revised regulations in that country and devaluation of rupee is also another reason for the increase. Setback for Mundra power projects In a setback for mega power projects of the Tata and Adani groups.nic.

integrating forest accounts into state and national economic assessments. Licensing and even the renewal process for even high radiation potential hazard units have been unsatisfactory. In line with this. all these aspects curbed the regulatory mechanism’s independence. What was the recommendation of Madhav Gadgil Committee? The eminent ecologist Madhav Gadgil-led Western Ghats Ecology Expert Panel (WGEEP) had recommended that the entire Western Ghats should be declared as an ecologically sensitive area. MoEF constituted the High Level Working Group (HLWG) to examine the large numbers of public responses received to the recommendations of the Gadgil report and to suggest the way ahead.443 X-ray units were registered. it was impossible to regulate all the machines. Since absence of such a policy could hamper “micro-level planning” of radiation safety. This is used to distinguish vegetation types over the landscape of the entire Western Ghats.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .
AERB has failed to develop “safety policy.
http://insightsonindia. To “incentivize green growth in the Western Ghats”. the PAC has recommended that a “safety policy document be brought out expeditiously. regulations by imposing appropriate
Recommendation of Dr K Kasturirangan’s report: In August 2012. The snail-like approach of AERB in bringing radiation users under regulatory control has indicated lack of manpower. Dr K Kasturirangan’s report draws upon the basic framework suggested by WGEEP to use remote sensing technologies to demarcate the ecologically sensitive areas of the Western Ghats but with two key differences. initiating an ecosystem service fund to help villages around the forests. Dr K Kasturirangan. 60 % of the Western Ghats region is under cultural landscapehuman dominated land use of settlements. DAE. According to the report approx. which demarcates ecologically sensitive areas. sound regulations’ verifying ‘compliance with such regulations’ enforcing established corrective measures. As part of the governance of ecologically sensitive areas it has proposed to set up a Decision Support and Monitoring Centre for Geospatial Analysis and Policy Support in the Western Ghats. Henceforth there is a need for an ‘independent and autonomous regulator’. It has also recommended that the high-resolution map. it remains a mere subordinate authority with powers delegated to it by the Centre. Only 5. who is also Secretary. Earlier too the Comptroller and Auditor-General (CAG) in its ‘performance audit’ had mentioned about the AERB’s weakness.” It does not have any authority for framing rules relating to nuclear and radiation safety. as against 9 km used by WGEEP. A substantial number of radiation facilities. There is “conflict of interest” with the AERB chairman reporting to the Atomic Energy Commission (AEC) Chairman. It used satellite data. more independent and empowered. AERB’s functioning comes under scrutiny: Public Accounts Committee (PAC) In the backdrop of the Atomic Energy Regulatory Board (AERB’s) blatant weaknesses. There is no fixed term of office for the Chairman of AERB. the following 3 functions should be performed by AERB: enacting ‘appropriate. promoting sustainable agriculture and. including 91% of the medical X-ray units in India.270 out of 57. AERB’s dependence on the DAE (Department of Atomic Energy) for budgetary and administrative support circumscribes its independence. the Public Accounts Committee (PAC) has adopted a report on the “Activities of Atomic Energy Regulatory Board”. The natural landscape ranges the remaining 40% A prohibitory regime on those activities with maximum interventionist and destructive impact on the environment. codes and guides. had suggested three levels of categorization where regulatory measures for protection would be imposed and had recommended the establishment of the Western Ghats Ecology Authority for management. Construction of windmills would be permitted in the ecologically sensitive area though environment regulations to review their impact may be brought in through other legal routes available to the government.” It also reiterated the imperative to set minimum benchmarks and safeguards to provide full assurance for safety in nuclear and radiation facilities Its human resources are limited. So it would be appropriate that DAE takes necessary steps to “review and scrutinize” all the existing rules. is the Chairman of the HLWG.2013 Decisions taken against the recommendation of the panel: Source -PIB The Ministry has decided not to go with the recommendations of the high-level panel in the case of windmills. operated outside its ambit. down to 24 m resolution. and as there were only 300 engineers and scientists. Following which the PAC has recommended making the mechanism stronger. standards. must be put in the public domain so that people can be involved in taking decisions about environment. It distinguishes between the cultural and the natural landscape of the region.com
Page 42
. agriculture and plantations. encouraging ecotourism for local benefits. which is first and foremost their concern. comprehensive. These include managing forests and improving their productivity to ensure inclusive growth and economic benefits for local communities. down to each village settlement. Hence PAC has suggested capacitybuilding and augmenting human resources. which will monitor changes and advise state government on policy reform. The below observations & recommendations were made by PAC: AERB does not have an independent legal status. It has recommended that the proposed law should contain a ‘sound provision to act as an effective deterrent against violators’.

there was ‘conflict of interest’ because PATH has been proven to represent the interest of pharmaceutical countries( especially the U. The term of office of the members is one year. The PAC is formed every year with a strength of not more than 22 members of which 15 are from Lok Sabha. Since 1967. The property claim over local varieties which Mahyco will backcross with their Bt Brinjal would possibly violate the Biodiversity Act 2002. The Parliamentary panel too had recently accused the international organisation PATH of exploiting the loopholes in the system during a trial of Human Papilloma Virus (HPV) vaccines and had also questioned the roles of the Indian Council of Medical Research(ICMR) and the Drug Controller-General of India(DGCI) in the entire process. The organisation has been facing stiff criticism since then. in the field of scientific and medical research and those who closely handles medical research. Its chief function is to examine the audit report of Comptroller and Auditor General (CAG) after it is laid in the Parliament.com
Page 43
. Not only the ethical violations of PATH had been exposed but also there were doubts raised regarding the role of PATH. This would provide Monsanto and Mahyco intellectual property resources that can restrict any making. the chairman of the committee is selected from the opposition.2013 AERB’s emergency preparedness is “inadequate”. industry. Mission:
More about Public Accounts Committee (PAC) The PAC is a committee of selected members of Parliament. Hence peer review and appraisal services of the International Atomic Energy Agency would go a long way in making the nuclear regulatory infrastructure effective. Earlier. to understand how to communicate during the crisis in medical research and undertake good crisis management practices. 1986. and 7 from Rajya Sabha. it was headed by a member of the ruling party. None of the 22 members shall be a minister in the government. constituted by the Parliament of India. PAC has recommended that the AERB has to strengthen the “regulating aspect of emergency preparedness. for the auditing of the expenditure of the Government of India. CAG assists the committee during the course of investigation. Benefits of the Training Program: The DBT training workshop aims to address key personnel from various stakeholders like biopharmaceutical. patient representatives. The company genetically modified local varieties of eggplant without mandatory approvals approval and laid illegal proprietary claim to the genetically modified seeds.
What is biopiracy?
http://insightsonindia. It aims to identify the crisis (sources and route). equip oneself to tackle the crisis. investigators. The Indian Institute of Mass Communication would also be a partner in the training programme. using or selling of these licensed domestic eggplant products.000 tribal girls in Khammam and Vadodara district but without getting informed consents from the parents or guardians of the participants who were all minors. civil society/patient advocacy group. But this collaboration has been criticized: The mission of the Board is to ensure that the use of ionizing radiation and nuclear energy in India does not cause undue risk to health and the environment. The regulatory authority of AERB is derived from the rules and notifications promulgated under the Atomic Energy Act and the Environment (Protection) Act. The National Biodiversity Board (NBA) and the Karnataka Biodiversity Board (KBB) had filed the case for criminal prosecution. The PAC was in news in 2011 when it probed the 2G spectrum scam. sustainable.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . regulatory. the upper house of the Parliament. PATH had vaccinated over 23. NGOs and judiciary. Source AERB Government website Earlier in 2010. The audiences are expected to benefit from this ‘multi-disciplinary’ platform wherein they can understand and upgrade their knowledge through interactive and knowledge sharing platform through various ‘case studies’.” AERB has been “slow in adopting international benchmarks and good practices” in nuclear and radiation operation. The Chairman is appointed by the Speaker of Lok Sabha. 1983 by the President of India by exercising the powers conferred by the Atomic Energy Act to carry out certain regulatory and safety functions under the Act. the lower house of the Parliament.S) GM crops and Biopiracy A case for criminal prosecution of the Mahyco(a Bt Brinjal promoter which is partly owned by Monsanto) officials) for biopiracy has been revived with the Karnataka High Court dismissing a petition to stay the prosecution on October 11. media. and the trials were suspended. Source Wikipedia Department of Biotechnology to train professionals on clinical ethics The Department of Biotechnology has collaborated with a PATH (Programme for Appropriate Technology in Health) associate to train professionals on “crisis management in clinical research”. and more credible.
What is AERB? It Mission? The Atomic Energy Regulatory Board was constituted on November 15. The issue came to limelight when seven girls reportedly died following the injection. . who are susceptible to face or had faced crisis in the past. ethics committees .

e. the required standards of inventiveness being applied to patent applications may be too low.
Biopiracy is apart of a larger problem whereby developing countries rich in biodiversity. the country is not able to derive the desired benefits. the SC has ordered the Centre to re-examine 157 clinical trials of Global Clinical Trial (GCT). The surface water minor irrigation schemes of Special Category States as well as such schemes satisfying specified criteria in NonSpecial Category States are also eligible for Central Assistance under AIBP. the terms of the programme have been widened and liberalized over the time. The Narmada Control Authority (NAC) under the Ministry of Water Resources oversees the compliance of the Narmada Water Disputes Tribunal award by the basin States of Gujarat. there were no checks and balances in the framework. Patents are granted to corporations who claim inventions based on indigenous resources or knowledge. or the companies or scientific institutions applying for the patents may deliberately fail to cite the prior-art upon which their inventions are based. The first reactor generated 75MWe and gradually notched up 160 MWe. benefits for patients.2013) In the pretext of this admission. both multipurpose and irrigation have spilled over from Plan to Plan mainly because of financial constraints being faced by the State Governments. the components of such projects which are not covered under such assistance by NABARD are considered for inclusion under the AIBP. which have the investment clearance of the Planning Commission. However. less than 30 per cent of the canal network has been laid in 30 years. including New Chemical Entities (NCEs) by the Apex and Technical Committees. It is said that that evaluation would be done on the 157 trials with emphasis on assessment of risk vs. Renovation and Modernization (ERM) projects are eligible for Central Assistance under AIBP.Around 2.5 lakh people in 245 villages are still residing in submergence zones and there is no land to rehabilitate them. and ethics committees were part of hospital with the absence of proper mechanisms to ensure patients’ safety.000-MWe unit of the Kudankulam Nuclear Power Project (KNPP) was synchronised with the southern regional grid. 75690 crore. major. Maharashtra and Madhya Pradesh. Although the project got the largest Central funding (Rs. Presently. As a result of this. Assistance to large projects is given for their phased completion so that benefits could start flowing early with comparatively smaller investments. It was also noted that. are exploited by transnational corporations and industries that make use of these resources. There were 171 Major. Biopiracy.2013 height of 122 meters. The dam is at a height of 122 meters and it is proposed to raise it to the full height of 138 meters. the 157 trials would be considered. Since its formulation. Groups such as The Action Group on Erosion. end of March. 5. despite a huge investment having already been made on these projects.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . without recompensing the countries from which they are taken. 259 Medium and 72 ERM on-going Irrigation projects in the country at various stages of construction at the end of VIII Plan(i. Ministry of Health and Family Welfare (MoHFW) and representative of the Drug Controller General of India (DCGI) admitted that the 157 trials were approved by the DCGI only on the recommendation of the New Drug Advisory Committee (NDAC) and without the approval of the Apex and Technical Committees formed after the order of the Supreme court(on January. generally by means of patents of legal rights over biological materials by international companies to develop food or medicines. innovations to existing therapeutic options and benefits to medical needs of the country. NBA opposes raising height of Narmada dam The Narmada Bachao Andolan (NBA) has urged the Central Government to halt the mega Sardar Sarovar Project at its present
http://insightsonindia. Only after the assessment of the committees. are not eligible for assistance under the Programme. Source:Ministry of Water Resources Southern grid gets first flow from Kudankulam The first 1. The Projects which are already receiving assistance from international/ domestic agencies such as NABARD etc. What is Accelerated Irrigation Benefit Program? A large number of river valley projects. refers to the appropriation. medium and Extension. Only those projects are considered under the Programme. The AIBP was conceived in the year 1996 by the Government of India in order to provide financial assistance to States to complete various ongoing projects in the country so that envisaged irrigation potential of the project could be created and thereby extend irrigation to more areas. Wrongly awarded patents may occur because: the researcher may not have had enough time and resources to conduct “prior art“ searches. Technology and Concentration (ETC) claim that there exists many cases in which patents are being acquired for “inventions” that are closely based on indigenous traditional knowledge TK. where investigators were paid by sponsors. More information: Here SC orders Centre to conduct five clinical trials The Supreme Court has allowed the Centre to conduct five clinical trials that were approved this year (2013) after ensuring proper mechanism and procedure to ensure the safety of patients along with audio-visual recording of participants maintaining the principle of confidentiality and preservation of documentation. it was successfully transmitted to the southern grid. Subsequently. or of ‘Plant Breeders’ Rights (PBR) certificates—a kind of Intellectual Property Rights system for plant varieties—being awarded for plant varieties that are virtually identical to “folk varieties” of the same plants. This was a matter of grave concern for the Union Government and remedial measures for expeditious completion of some of the projects which were in advanced stage of completion became necessary.1997) with spillover cost of Rs.736 crore) under the Accelerated Irrigation Benefit Programme. This will give the requisite benefits without uprooting thousands of rural and tribal people.com
Page 44
.

Safeguards should be comprehensive to include financial. 2013. education and economic status. various tests are conducted and the technical parameters verified. 1952 will now include songs and its lyrics to the definition of a ‘film’. The CM also noted that in Canada. should be construed as compensation for the surrogate mother’s time and effort.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . the Bill should provide for punitive action in case the provisions of the Bill are either not followed or misused. the nuclear power contribution in the country will be raised to 5. Though anti-KKNPP agitation gained momentum in neighbouring Idinthakarai. her acceptance of the risks of pregnancy and child birth and her possible loss of employment opportunities. This is in line with giving prime importance to the health of the surrogate mother. Vishwaroopam and Madras Café running into trouble in some States. it was not able to take a firm stand on this issue.which is responsible for drafting the ART bill: To protect the surrogate mother from exploitation. The Cinematograph Act. only a boycott would bring about a genuine change in Sri Lanka’s attitude to the Tamils on the island.
http://insightsonindia.2013 The power will be further raised to 500 MWe. or. irrelevant whether the surrogate mother is sought by an individual or a couple or whether they are Indians or foreigners. pressurised light water reactor). This has been done. The physicians should ensure that appropriate procedures are used to screen and counsel both the intended parents and surrogate mother. The draft Cinematograph Bill. subsequent stages are reached The KNPP was conceived in 1988 through the Rajiv-Gorbachev agreement. which temporarily impeded the project’s progress. ‘U/A’ and ‘A’ certification to the internationally prevalent practice of age-related classifications and certifications. Referral for mental health counseling should be provided before initiation of a pregnancy to permit the potential surrogate mother to explore the range of outcomes and possible long-term effects and to evaluate her psychological risks and vulnerabilities as well as the possible effects of surrogacy on her existing relationships and on any existing children.000-MWe VVER (Voda Voda Energo Reactor. 750 MWe and 1. The ‘S’ classification for restricted circulation has been retained. Tamil Nadu (TN) urges Centre to boycott CHOGM meet The resolution passed unanimously in TN assembly. with the grounds for proposing such a move and giving him/her reasonable opportunity to respond can the Central government invoke this clause. and subsequently granted clearance for the “first approach to criticality” on July. has called for “total boycott” of the Commonwealth Heads of Government Meeting (CHOGM) in Colombo (Sri Lanka) until Tamils are given rights on a par with the Sinhalese and live freely. In this context. At every stage. Under no circumstances should payment be made contingent on the delivery of a live born and healthy child. one should be provided with independent legal representation and mental health counseling. to address the issue of ‘item songs’ as the ‘sexual overtone and teasing references’ have drawn considerable ire.demanding a ban by the ‘vested groups’. Since surrogacy arrangements usually take place between parties with unequal power. the Empowered Committee on film certification has mandated that no State government can order the suspension of a film. the AERB gave its nod for initial fuel-loading on August 2012. Once the KKNPP’s first unit of 1. Actual work on the project started only on March. where only a handful of Tamils lived. The emphasis should be to ensure that the benefits of surrogacy are most beneficial to those who are weakest in the supply chain (the surrogates). her initiating and carrying the pregnancy. in particular. it should be provided that she should not be less than 25 years and should have an experience of at least bearing two children of her own. Even Entry 60 of List I of the Seventh Schedule to the Constitution places law-making power relating to sanction of film for exhibition in the jurisdiction of the Central government The Committee has also sought to shift from the current practice of ‘U’. There should be provisions to state that the mental health and the decision making ability of the woman must be certified in order to permit her to act as a surrogate mother. had decided against participating in the meeting.whether or not a surrogate mother can expect to receive a fee for her services and the manner in which his fee is determined and paid. Tamil Nadu’s view: According to the CM.000-MWe capacity is commissioned.It has proposed to break-up ‘U/A’ by age to ‘12+’ and ‘15+’ while retaining ‘U’ and ‘A’.000 MWe in stages. 2013 has suggested a change in the 1952 legislation according to which only the Central government can suspend the screening of a film after it has been certified by the Censor Board. Based on the results of the tests at each stage and with AERB [Atomic Energy Regulatory Board] clearances. Payment. The Bill should also contain provisions.com
Page 45
. earlier it was confined to the “moving picture content of the film”. Centre alone can suspend screening of films certified by Censor Board: panel In the recent instances of films like Aarakshan. The ART clinics should not only counsel the patient and individuals but all couples desirous of understanding the process with all its implications in social and legal issues. which paved the way for the export of two 1. social and physical wellness of the surrogate mother. 2002. Assisted Reproductive Technologies (ART) Bill to address the issue of surrogacy According to the Ministry of Health and Family Welfare the proposed ART Bill should provide for comprehensive safeguards in order to address the issue of surrogacy and provide adequate safeguards to protect the surrogate mother. her participation in labour and delivery. Though India being home to eight crore Tamils.780 MWe. Following are the safeguard measures suggested by the ministry to the the Indian Council of Medical Research (ICMR). if made. Only after a show-cause notice has been given in writing to the film-maker.

if a boycott would help the cause of upholding human rights and civil liberties and India needs to take a practical approach here. which has just formed the first northern provincial council government is pro-Indian boycott. the Sri Lankan government killed lakhs of innocent Tamils and committed genocide. Earlier India had also stopped providing training to the Sri Lankan Army personnel. Subsequently. the resolution had called for a referendum among Sri Lankan Tamils and the Tamil diaspora on a separate Eelam. Building Global Resilience. 1986 where mining activities would be banned.CHOGM website No mining within one km of national parks. in violation of the international law and the Geneva Convention on war. and youth affairs. information and communication technology. During the last phase of the civil war. The Supreme Court had demanded the Centre and States to decide the boundaries of the ESZs across all protected wildlife areas or let a 10 km periphery around them be accepted as ESZs by default. race. human rights. sustainable development. the Union Environment Ministry has decided in an order to restart iron ore excavation in a regulated manner. It also demanded an independent international inquiry into the war crimes and trials in the international court of justice. small states. Present Situation: In the backdrop of a request to restart regulated mining in the coastal State (Goa) (which had been earlier stopped on the reports of Shah Commission). the Indian government should look into the reasons as to why Canada has decided against participating at the CHOGM. multilateral trade issues. sanctuaries in Goa
More about CHOGM: The Commonwealth Heads of Government Meeting (CHOGM) is held every two years to enable leaders of Commonwealth countries to come together to discuss global and Commonwealth issues. The theme of the 2011 CHOGM in Perth. debt management. gender equality. and take a decision. this session allows heads of state to freely and frankly exchange their views on important issues and come to a consensus. The State government also proposed that natural features around the boundaries delineating the six wildlife areas be used as the limit of the ESZs. With an informal atmosphere. Sri Lanka’s View: Background: The Sri Lankan High Commissioner is of the view that whether a boycott would give India leverage in the pursuit of its interest in Sri Lanka. Australia. The TNA had won the elections. according to a report the Tamil National Alliance (TNA).com
. This year (2013). the first time an Asian country is hosting the summit in 24years. Earlier. TNA is of the view that. That is to say. colour. This represents the Tamils of the Northern Province adequately. It was also felt that the TN government had not taken into account that a major development in the form of elections had taken place in the Northern Province. TNA’s View: However. since the Sri Lankan government had “violated the norms of the Commonwealth” . rather than succumbing to the politics. “we are implacably opposed to all forms of discrimination whether rooted in gender. Later. creed. political belief or other ground”. Hence this issue has been neglected by the TN government. the Goa government also sent proposals to the Centre for declaring Ecologically Sensitive Zone (ESZ) around protected wildlife areas. 2013. The committee found that in many cases the natural features suggested as boundaries of the ESZ ended up within a few hundred metres of the parks. Previous CHOGMs have focused on a range of global issues. good governance.2013 The CM has justified the resolution saying that. Following which.” Courtesy. health. The Ministry has ordered that areas ranging up to one km beyond the boundaries of the national parks and sanctuaries in the State would be declared Ecologically Sensitive Zone (ESZ) under the Environment (Protection) Act. One unique aspect of the meeting is that the formal opening ceremony and the formal Executive Session are followed by a http://insightsonindia. The Ministry accepted the report and has ordered that in cases of Bhagwan Mahaveer and Netravali Wildlife Sanctuaries. the Environment Ministry set up a committee under the chairmanship of National Tiger Conservation Authority chief Rajesh Gopal to study the proposal. as mandated by the Supreme Court. in March. a resolution was also passed in the Assembly urging India to abstain from using the term “friendly” nation while making reference to Sri Lanka.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . environment. which was the hardest hit in the conflict between the armed forces and the Liberation Tigers of Tamil Eelam.The ousting of the country’s Chief Justice is one of the instances where the government had violated basic foundations of the Commonwealth. recommended a zone of no-mining up to one km from the boundary. education. It has also recommended that mining be banned in these areas in future and existing mines around two of the six sanctuaries should be phased out over time to ensure there is no sudden loss of livelihood for the people. The Justice Shah Commission had reported that mines had flourished in the midst of national parks and wildlife sanctuaries in Goa without the clearance from the standing committee of the National Board of Wildlife. instead. the Sri Lankan government had completely violated the core values of the Commonwealth. democracy. Page 46 “retreat” where leaders meet privately for discussions. The committee. climate change. The Commonwealth charter says. mining would be phased out. CHOGM is taking place in Sri Lanka. was “Building National Resilience. following the repeated request of the Tamil Nadu CM. Else India would be isolated if it boycotted the summit because only Canada had announced its decision to stay away. mining was suspended here. and to decide on collective policies and initiatives. getting almost 80 % of the vote. accordingly. including international peace and security.

social networking sites such as Facebook.
About 98th Amendment Act & Significance of Article 371J The 98th Amendment Act provides for an insertion of a new article 371J in the constitution.com
Page 47
. And with regard to content posted by ‘persons other than candidates and political parties’ especially those who are related or somehow connected with the election campaigning of political parties and candidates. Raichur. has to give their e-mail Ids and accounts of their social networking sites. further clarity would be given on consultation with the Ministry of Communication and Information Technology on practical ways to deal with the issue Payments made to social media websites for carrying advertisements. which has come into force with immediate effect. under the relevant provisions. This is in accordance to the provisions of clause (a) of Rule 64 of Conduct of Elections Rules. Election Commission okays NOTA option The Election Commission has ordered the Chief Electoral Officers of all States and Union territories to provide for ‘None of the Above’ (NOTA) option in electronic voting machines (EVMs) and ballot papers. This regulation has come into force in the interest of “maintaining transparency and a level playing field during polls. the Ministry has said that the draft notifications for each sanctuary would be subject to the final decision of the apex court. Advantages of this setup: The Board. every candidate. The SMS facility.”
http://insightsonindia. Yadgir and Bellary districts. the RO has to. and virtual game-worlds (Apps). The order would be applicable to social media sites such as Wikipedia. if the number of contesting candidates is equal to the number of seats to be filled. asking them to strictly abide by the model code of conduct. 1951. read with Section 65 of the Representation of the People Act. The option will be provided at the bottom of the panel on the EVMs or as the last row in the ballot paper after all the candidates have been listed with their respective symbols in the same language used to list the candidates. and spending on salaries for staff hired to maintain the social media accounts of the parties and the candidates would be included in poll expenses. The Election Commission (EC) has clarified that if the number of electors who had utilised the NOTA (none of the above candidates) option in the EVM/Ballot paper exceeded the votes polled by any of the candidates. empowers the Governor of Karnataka to take steps to develop the Hyderabad-Karnataka Region.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . As per the new order. 2013. campaign on Net. Koppal. content communities like YouTube. social media Political parties and candidates will now have to account for the money spent on the use of social media for the poll campaigns. and state government positions in the Region for persons from the Region (local residents) Courtesy -Prsindia website EC regulates poll advertisements. The region comprises Gulbarga. Contents of the advertisements issued by parties/candidates in such websites should be pre-certified by the appropriate authorities and all expenditure made towards such campaign/advertisement would be included in the election expenditure accounts of candidates/parties. Similarly. at the time of filing the nomination. where there is only one contesting candidate in the fray. will ensure equitable allocation of funds for development from the State budget. for monitoring by poll/expenditure officials. declare the sole contestant as elected. Madhya Pradesh. The Commission’s order is significant in view of the ongoing election process for the Assembly polls in Delhi. allowing the Karnataka Governor to establish a separate development board for the Hyderabad-Karnataka region under Article 371J of the Constitution.2013 With the case still in the Supreme Court. It will also promote employment by providing for local cadres in service and reserve seats for locals in educational and vocational training institutions. Article 371J: Nod for development board President Pranab Mukherjee has issued an order. The President may now allow the Governor to take the following steps for development of the region: setting up a development board for the Region ensure equitable allocation of funds for development of the Region provide for reservation in educational and vocational training institutions. Bidar. microblogs such as Twitter. blogs. including the social media websites. Article 371J. the candidate who secures the highest number of votes would be declared winner. the Returning Officer (RO) has to declare all the contesting candidates to be duly elected. Mizoram and Rajasthan. expenditure on development of content. if any. It aims to establish an institutional mechanism to develop the region and promote inclusive growth which will reduce interregion and inter-district disparity in the State of Karnataka. availed of by candidates and political parties during campaign. The Election Commission has issued a series of instructions to political parties and candidates on utilising the Internet and social media websites for poll campaign and advertisements. In the case of elections to the Lok Sabha and the Legislative Assemblies. The provisions of the code of conduct and related instructions issued by it would apply to the content being posted on the Internet. by candidates and parties. is already under the scanner of the Commission’s poll expenditure monitoring officials. It was passed in January. Chhattisgarh. 1961.

Kashmiris observe Black Day Even as United Nations Secretary-General Ban Ki-moon offered to facilitate a dialogue between India and Pakistan. as people observed Black Day. for which animal it is famous for.” Kashmiris throughout the world observe October 27 as Black Day to mark the day in 1947 when Indian forces entered the Kashmir Valley.
Functions of Cabinet Committee on Security (CCS) to deal with all Defence related issues. rocket launchers. 2012 the Prime Minister-headed Cabinet Committee on Security (CCS) had approved Rs. it will directly link the Advanced Landing Ground (ALG) of Vijaynagar. Also there is no electricity in Vijaynagar. The Miao-Vijaynagar road was motorable till 1976 and has fallen into disrepair since then.000 crore for modernization of the CAPFs that is to be sanctioned and utilized in the next five years. considered to be one of the toughest ALGs in the country at an altitude of 4. nonscaled and new items in respect of Department of Defence. the National Security Guard (NSG). the CAPFs were sanctioned Rs. 100 km of it passing through the Namdapha National Park. to deal with policy matters concerning foreign affairs that have internal or external security implications including cases relating to agreements with other countries on security related issues. guns and rifles. Apart from procuring latest machine guns.360 crore from the Ministry for 201314 to buy latest weaponry. to deal with economic and political issues impinging on national security. The CAPFs had sought Rs. in May. For over 5.find out in the Atlas where Namdapha National Park is located. but the forces could utilize only Rs.
http://insightsonindia. CCS is chaired by the Prime Minister of India and comprises the Minister of Defence. gadgets and surveillance equipment to meet threats and challenges posed by terrorists. the Border Security Force (BSF). there is no road to this border area with 13 recognised villages and one unrecognised settlement.000 people of these villages. At present. demanding that Kashmiris be allowed their “right of self-determination. 35 crore. (from the prelims point of view. 2. projects.2013 The NOTA option was made mandatory by the Supreme Court in September. the Minister of Home Affairs. Sashastra Seema Bal (SSB). antinational elements and foreign forces along the border. and also an Assam Rifles post that was opened in 1962 in this remote and strategic frontier. to consider all cases-involving capital expenditure related to defence(Example: the Department of Defence Production. to deal with issues relating to law and order.com
Page 48
. the rivers flowing through it/near by and also the locations of other National Parks on the same lines) It is the country’s longest road project under Prime Minister’s Gram Sadak Yojana (PMGSY) it will have altogether 25 bridges along its stretch.200 feet. 2013 so that people who did not want to vote for any of the candidates in their respective constituencies had the option of rejecting all of them without giving up their right to a secret vote. schemes. automatic pistols. the shopping list of the CAPFs include night vision devices. patrolling and special vehicles. and the Minister of External Affairs.NIC website Centre clears Road project (under PMGSY) in Arunachal Pradesh The Centre has cleared the 157 km Miao-Vijaynagar road project that will connect the remote Vijaynagar circle in Changlang district of Arunachal Pradesh along the India-Myanmar border. All-Party Hurriyat Conference chairperson Syed Ali Geelani said the United Nations had failed to give the “right of selfdetermination” to Kashmiris through plebiscite and added that the political front did not accept the ‘Indian occupation. Significantly.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . the only alternative to air transport is a six-day walk from Vijaynagar to the nearest town Miao through the dense jungles of Namdapha. there were protests all over the city. But the MHA has agreed to give just Rs. the Minister of Finance. 90 crore to fund modernization plans of five CAPFs. Once the project is completed. the ITBP and the CISF Courtesy. with the Indo-Tibetan Border Police (ITBP) and the Central Industrial Security Force (CISF) not getting even a single penny. the Department of Defence Research and Development) in respect of the Services Capital Acquisition plans. Central Armed Police Forces (CAPFs) constitutesCentral Reserve Police Force (CRPF). and setting up new structures to deal with security related issues. Assam Rifles (AR). Maoists.128 crore for modernization.’ Steep cut in funds allocation to Central police forces Ambitious modernization plans of the Central Armed Police Forces (CAPFs) will suffer yet another setback as the Ministry of Home Affairs (MHA) has decided to make a steep cut in allocation of funds for 2013-14. and internal security. in 2012-13.11. Significantly.
to review the manpower requirements relating to national security including proposals concerning creation of posts carrying the pay scale or pay band plus Grade Pay equivalent to that of a Joint Secretary to the Government of India and higher. procurement of security related equipment. and all matters relating to atomic energy.

The system administers & monitors every stage of road development starting from its suggestion form to completion of road. Project Goals Developmental planning for DMIC aims to achieve certain end results with implementation that would ensure
http://insightsonindia. i. The industry supports over 28. Rajasthan. All of this could disrupt the companies’ business model. Haryana. since there are large number of Indians who are working on temporary work visas – H1B or L1 visas in U. immigration reforms might hurt Indian IT sector Commerce and Industry Minister Anand Sharma had raised serious concerns over certain clauses in the United States Immigration Bill and that it would profoundly undermine the competitiveness of the Indian IT industry in the U. Around 60% to 70% of offshore IT employees work in U.
4)
All you need to know about DMIC Delhi-Mumbai Industrial Corridor is a mega infra-structure project of USD 90 billion with the financial & technical aids from Japan.S and the Indian firms would be forced to cut down on these employees. The programme envisages connecting all habitations with a population of 500 persons and above in the plain areas and 250 persons and above in hill States. half of the nation’s industrial output and exports and employs 40 per cent of its total workforce.
PMGSY was launched on 25th December 2000 as a fully funded Centrally Sponsored Scheme to provide all weather road connectivity in rural areas of the country. This Bill has a serious bearing on the Indian IT industry. NCR of Delhi. in the last five years. ethnic & desert region villages having a population of five hundred & more by the year 2003. OMMAS produces detailed reports visible in citizens sector. The Delhi Mumbai leg of the Golden Quadrilateral National Highway also runs almost parallel to the Freight Corridor. which has taken cognisance of the serious challenge of reviving the growth of manufacturing and raising its share in the GDP. enhance foreign investments and attain sustainable development. Senate.P. The proposed law will hurt the over $100 billion IT-ITeS industry in India and software firms (Wipro.S. ethnic & desert region villages having population of two fifty & more by 2007. The concerns were regarding the discriminatory measures related to skilled non-immigrant visas in the Comprehensive Immigration Reform Bill passed by the U. in this regard.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .S. accounts for 43 per cent of national GDP.com
Page 49
. The OMMAS scheme also consists of separate unit to follow the fixed cost on every road.in & indianyojna website U. There were positives signs from the U. For executing this program. It passes thru the States of U.S. Courtesy -pmgsy. Indian companies will have to pay more interms of higher visa fees and higher wages to H1B visa holders.S.) citizens of U.e. It is one of the schemes of Ministry of Rural Development.S.S. with end terminals at Dadri in the National Capital Region of Delhi and Jawaharlal Nehru Port near Mumbai.S. which passes through six Indian States. Infosys.000 jobs and has contributed nearly $15 billion to the U. Vision To create strong economic base with globally competitive environment and state-of-the-art infrastructure to activate local commerce. Depending on the data given by state & district officials. covering an overall length of 1483 KMs between the political capital and the business capital of India. DMIC. Delhi and Mumbai. & mount states. National Manufacturing Policy.S. India’s concern: It is on the provision in the Bill which relates to non-immigrant visas. the tribal and the desert areas. investment in the Delhi-Mumbai Industrial Corridor (DMIC) project and National Manufacturing Investment Zones. Gujarat and Maharashtra. The Minister also sought U. TCS etc) as their cost of operations could go up significantly.nic. residents and this in turn would increase the expenditure on wages and other benefits.S. CDAC Pune’s egovernance department has developed this & is among the biggest Indian databases.2013 Immigration bill: Issues What is PRADHAN (PMGSY)? MANTRI GRAM SADAK YOJANA The Immigration Bill if implemented would make the illegal immigrants (living in U. The objective was to give roads to villages 1) 2) 3) with a inhabitants of thousand persons & more by year 2003 having populace of five hundred & more by 2007 mount states. an Online Management and Monitoring System or OMMS GIS scheme was created to recognize targets & monitor growth. This Dedicated Freight Corridor offers high-speed connectivity for High Axle Load Wagons (25 Tonne) of Double Stacked Container Trains supported by high power locomotives.S. Impact on India: This would mean that Indian IT companies will have to employ more U.

The Mahatma Gandhi Pravasi Suraksha Yojana is a pension and life insurance fund that could benefit up to two million expatriate workers. The government will make an annual contribution of Rs. It is also opposed to the setting up of Special Economic Zones (SEZs). provide incentives for infrastructure development on a Public Private Partnership (PPP) basis through appropriate financing instruments.1. the Minister of Overseas Indian affairs. but then instead of acquiring new land it would be better to make use of the land that is already available’. According to the State Govt (WB). to provide a productive environment for persons transitioning from the primary to the secondary and tertiary sectors.1. 3. which would be valid for a period of five years or the return of the worker to India.in
Courtesy – dmicdc website India’s National Manufacturing Policy
National Investment & Manufacturing Zones (NIMZs) The Government of India had announced a National Manufacturing Policy with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs. Subscribers then have to open a Non-Resident External account that allows NRIs to remit funds in any permitted foreign currency. Earlier. Rehabilitation and Resettlement Act 2013. Eligibility criteria: Overseas Indian workers between 18-50 years old who have Emigration Check Required status stamped on their passport. The policy is based on the principle of industrial growth in http://insightsonindia. Double employment potential in 7 years Triple industrial output in 9 years Quadruple exports from the region in 8-9 years Insurance cover for expatriate workers in Gulf on the anvil DMIC is conceived to be developed as a Model Industrial Corridor of international standards with emphasis on expanding the manufacturing and services base and develop DMIC as the ‘Global Manufacturing and Trading Hub’ DMICDC undertakes project development services for investment regions / industrial areas/ economic regions/ industrial nodes and townships. whichever is earlier. It will be channeled to a corpus to be used for resettlement at the time of return. land use on the basis of zoning.000 a year are eligible for an additional payment of Rs. The participant’s contribution will be automatically deducted from this account and credited to the scheme. The scheme encourages expat employees to mop-up their savings that can be used for their resettlement on their return to India. partnership with the States. The NIMZs are envisaged as integrated industrial townships with state of the art infrastructure. Women workers are eligible for an additional contribution of Rs.000 a year. 1. The NIMZs are an important instrumentality of the manufacturing policy. ‘Land was not an issue. Criticism over the new Land Acquisition Act Criticism by the State (West Bengal): Alleging that the Centre did not discuss various important aspects of the Right to Fair Compensation and Transparency in Land Acquisition. Infosys had put its plan on hold as it wanted SEZ facility for the project in the state.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .4. West Bengal government too did not support the Act. clean and energy efficient technology.000. which is converted to Indian rupees and credited to their account. skill development facilities etc.000-Rs. necessary social infrastructure.nic. The Central Government will create the enabling policy frame work.2013 realization of envisaged vision for the project and lead to economic development. The government would also make significant contribution to the scheme. India is set to launch an ambitious scheme that will provide insurance and financial cover to over a million blue-collar expatriate workers residing in the Gulf countries. and have migrated on employment or contract visa. for various central government agencies and also help in assisting state governments. Accordingly the project goals for DMIC are: 1.com
Page 50
. Those who save more than Rs.12. are eligible to enroll in the scheme. and State Governments will be encouraged to adopt the instrumentalities provided in the policy Courtesy -dipp. The scheme will be formally launched by Vayalar Ravi.900 by the government. It would also contribute to their pension and provide a life insurance cover against natural death during the period of coverage. 2.000 for those who save between Rs.

Another criteria.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . in order to maintain the same priority for signing of UAS licence as well as allocation of spectrum) The report has also criticized CAG’s “presumptive loss theory” and has noted that all indicators and calculations used by it to reach the loss figures ranging between Rs. The Committee has suggested that. for CAG’s loss calculations was on the basis of revenue realised through 3G auction. then it only becomes resettlement and not rehabilitation. as it would encompass the social. By any standards. According to the JPC report.76-lakh crore were “untenable” and “unrealistic.” The CAG had accused the government for causing a massive loss to the exchequer by granting 122 licences in 2008 at a price discovered in 2001. (As per this policy. The applications received later were not considered till the applications received earlier were decided and allocated LOI. social impact analysis and assessment of the effects on environment of industrial projects should be included at the very beginning of the total process of development planning since these processes take more time and would go on simultaneously. Further improvement of the Act. first-served (FCFS) criteria followed while allocating the spectrum was a misrepresentation of facts and in tactic deviation from the existing procedure. the guidelines for spectrum audit should contain a provision for penalty for hoarding of excess spectrum and also for taking back excess spectrum. the benefits far outweigh any possible revenue forgone by the government in the process of sustained policy intervention with the broad objective of increasing tele-density and maximising welfare of the people. Therefore loss calculation and determination of value of licences and spectrum on the basis of legitimate infusion of FDI by means of fresh equity by the telecom companies was illogical. According to the report. in order to ensure optimal utilisation of assigned bandwidth.
3)
4)
Conclusion: The report has termed spectrum as “a precious national asset. whether government or private. would also lead to the resolution of the conflict between the “land owners and the government” to a large extent. calculation of presumptive loss comes under the domain of the policy perspective of the government and CAG has not taken into consideration the benefits which accrued to the people of the nation at the grass-roots level as a result of implementation of the policy. Some positives: However.in According to the report. Hence calculation of value of spectrum in retrospect by any agency could be error prone with a misleading outcome. What next? The JPC report will be presented to the Parliament in the coming winter session and a discussion is expected in both the Houses.57. The activist added that. The interests of the later. Patkar welcomedthe inclusion of the “role of the people whose land has been acquired”.com
Page 51
. the interests of those making monetary investments in an industrial project were given more importance than those who had ‘lived their for generations’. Ms. work in the spirit of mutual understanding and cooperation and utilise the resource optimally with self-discipline. the inclusion of ‘impact analysis’. Industrial set-ups like factories should come up on “non-agricultural” land. Point to be noted: In most cases of land acquisition in the country.” and that it was necessary for all spectrum users. the DoT was of the view that the investment brought in by strategic foreign partners were to be utilised for rolling out the services in the licensed service areas and that issuing additional equity for bringing in foreign investment was a normal practice in the corporate world. a social activist – The process of rehabilitation in the Act was “severely flawed” as it had no arrangement for “alternative livelihood” and is only limited to monetary compensation. the earlier applicant was issued LOI first and the latter one was issued LOI at least a day after.1. if found. It added that. should undertake spectrum audit for which details should be finalised at the earliest. Rational behind the Criticism over CAG’s “presumptive loss theory”: 1) The CAG’s calculation of loss was based on FDI attra cted by the new entrants in the telecom market. So the revenue realised in 2010 for 3G was no where comparable to the revenue generated by the 2G spectrum allocated as far back as in 2008 where the demand-supply position was also very different. JPC report on 2G submitted to Speaker The report of the 30-member Joint Parliamentary Committee (JPC) on “allocation and pricing of telecom licences and 2G Spectrum during 1998-2009” was presented to Lok Sabha Speaker Meira Kumar and has also been made available to the public in the Lok Sabha website http://www. This presumption has been criticized since the 3G spectrum was auctioned for the first time in India in early 2010. the applications which were received first in the DoT were issued Letter of Intent (LOI) first. In case approvals for more than one LOI in the same Telecom Circle was received 2) simultaneously.666 crore and Rs. needs to be given due consideration to protect them from any harassment.nic. economic and political effect on those people whose land has been acquired.2013 Criticism by Social Activist: According to Medha Patkar. Raja on the procedure to be followed by the Department of Telecommunications (DoT) regarding issuance of the Unified Access Services (UAS) licences. the TRAI. Prime Minister Manmohan Singh was misled by then Communications Minister A. If the rehabilitation process does not include arrangements for alternative jobs for those whose land has been acquired. as regulator. Acquirement of agricultural land for industrial projects should be stopped and preference should be given to barren land for industrial development i.loksabha. The First-come..
http://insightsonindia.e. the activist did not reject the Act all-together.

10.com Subsidised LPG cylinders should be reduced from the present nine to six per annum to each household. 4 per litre in kerosene. pumping sets etc. And the Secretary-level powers will only help CBI to bypass the red-tapism and attain functional efficacy. For instance. 6 per litre to public sector oil marketing companies (OMCs). This can be accomplished if PDS kerosene is priced at full market price. 4 per litre immediately. is given through direct cash transfer mechanism. price of kerosene should be increased by Rs. At the same time. The Railways have identified seven routes. it has called for elimination of subsidy on diesel within one year. 6 per litre. Till this is implemented. BSF & CRPF. The committee is of the view that the PDS kerosene price should be comparable to diesel price to prevent diversion and adulteration.‘the political parties in power wanted a strong hold on CBI. all commercially viable on which the mini high speed trains with a speed of 160 km per hour to 200 km per hour would be operated under the PPP mode. scientific and therapeutic aspects including soft skills. By giving the autonomy. Nearly 30 tigers had been tagged in the reserve and given identification numbers. And moreover. It would contribute in the joint venture to be formed under the Public Private Partnership(PPP) mode. Why was Kirit Parikh Committee set up? The Kirit Parikh panel was set up by the Petroleum and Natural Gas Ministry to suggest a methodology for pricing of diesel and cooking fuel. CBI’s point of view: However. and the benefit of the subsidy to the deserving consumers i. the Director would be permitted to report to the Minister and not through the bureaucracy. 250 in LPG cylinder with immediate effect. BPL families. That is to say. a Senior counsel representing CBI. the counsel said there had been occasions when well-thought-out proposals given by the CBI were returned by desk officers. The other stakeholders would be the State governments and private investors. and move rapidly towards making the price of diesel market-determined. Hitherto. generating sets. it would set a wrong precedent or it would have serious repercussions on other authorities in the country as well. there would be similar requests from RAW. and completed within the next two years. Moreover CBI is accountable to the Supreme court and the government. The CBI had already been conferred a lot of functional autonomy and vesting Secretary-level powers would go against the spirit of Vineet Narain judgment. the agency had been facing hurdles at every stage in its administrative functioning and it needed freedom from government control. ‘Functional autonomy’ is of utmost importance. professional ethics and event management tactics.e. Punjabi University starts ‘gatka’ course A memorandum of understanding (MoU) has been signed between the Punjab University and World Gatka Federation (WGF) recently to start a one-year diploma course in ‘gatka’ to promote the traditional Sikh martial art. The Railway Minister Mallikarjun Kharge launched the HSRC as a fully-owned subsidiary of Rail Vikas Nigam Limited. 5 per litre with immediate effect.
Page 52
. The direct transfer of subsidy to BPL families country-wide should be fast-tracked. 72. Privatisation of railway passenger segment finally The Railways has taken its first-step on privatization of its passenger segment on its existing infrastructure with the launch of the High Speed Rail Corporation (HSRC). buses. It has called for capping the subsidy on diesel at Rs. Gas turbine requiring distillate fuels normally make use of HSD as fuel. The tigers are being numbered so that there will be a transparent way of finding out if any of the tiger goes missing. The students would be imparted education in various ‘gatka’ forms. More about HSD prices HSD is normally used as a fuel for high speed diesel engines operating above 750 rpm i. OMCs should be permitted to revise the prices above the subsidy cap on their own. and Rs. Parikh panel wants diesel price hiked by Rs. fighting techniques. The balance under-recovery should be made up through a subsidy of Rs. In view of high under-recovery of Rs. This would cut the subsidy bill (or save the exchequer) by Rs. The Solicitor-General also added that the present arrangement had various checks and balances. http://insightsonindia.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . which his predecessor Nitish Kumar had set up with the objective of raising extra budgetary resources from the market and private investors. HSRC is the implementing agency. Justifying the demand. locomotives.51 per litre on diesel. lorries. The panel has said that the Government should take steps to pass on the impact of rise in price of diesel to consumers.e. 5 Recommendations of Kirit Parikh Committee: The Government-appointed Kirit Parikh Committee has recommended a price increase of Rs. the request seeking the appointment of 22 public prosecutors was yet to be cleared.000 crore. Use of Technology in Tiger Census The Periyar Tiger Reserve will be the first tiger reserve in the country to use technology for identifying and tagging each tiger for more effective conservation. Rs. HSD (High Speed Diesel) prices should be raised by Rs. government of India has been strongly opposed in the Supreme Court by the Centre. In future. refuted the above rational saying that. and thereafter be revised from time to time at least in line with growth in the per capita agriculture GDP. 5 per litre in diesel.2013 Government’s opposition to CBI’s autonomy The CBI’s request for granting its Director ex-officio powers of Secretary. Government’s point of View: Solicitor-General Mohan Parasaran said the government was not agreeable to this.

which was followed by Hong Kong. India continued to trail behind Pakistan and Bangladesh on the index. India has slipped three positions to 134th spot (out of 189 countries) in the latest ‘ease of doing business’ list.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . in comparison. protecting investors. politics. a high ranking does mean that the government has created a regulatory environment conducive to operating a business. The other two are Haiti and Timor-Leste. The score for the country improved slightly from 22. But still. The new software program identifies these stripes. the GHI highlights successes and failures in hunger reduction and provides insights into the drivers of hunger. Ghana. The tiger’s presence or absence in its natural habitat is related to biological aspects. stunted growth. and Child mortality: the mortality rate of children younger than the age of five (partially reflecting the fatal synergy of inadequate dietary intake and unhealthy environments). Countries that have achieved the highest progress on this front included Venezuela. education.2013 The tiger stripes are unique. According to the report. or both). New Zealand.69 per cent between 1990-2012. had a much better score to begin with and by 2012 entered the select block of nations doing the best to fight hunger. Last year. Thailand and Vietnam – all achieving more than 55% increase in their GHI score. the GHI combines three equally weighted indicators in one index number: Undernourishment: the proportion of undernourished as a
More about WEF The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business. the GHI aims to trigger actions to reduce hunger. the level of hunger in India remains at ‘alarming levels’.3 this year. By raising awareness and understanding of regional and country differences in hunger. Mexico. What Next? The data collected from the census would be used to solve issues related to habitat conservation.com
. Even though there is a marginal improvement in India’s ranking. just like the thumb-impression of each human-being is different. do not measure all aspects of the business environment that matter to firms and investors or that affect the competitiveness of the economy. which is one indicator of child under-nutrition. The index is compiled by Geneva-based World Economic Forum (WEF).
What is GHI? The Global Hunger Index (GHI) is designed to comprehensively measure and track hunger globally and by country and region. China improved its ranking by 57. For example. Singapore topped the list. getting electricity. paying taxes. Social inequality and the low nutritional. According to which the countries are ranked based on the division of resources and opportunities between men and women in the areas of economy. trading across borders. However these indicators. education and health. academic and other leaders of society to shape global. Criteria for deciding on the index: To reflect the multidimensional nature of hunger. India is one of the three countries outside Sub-Saharan Africa to fall in this category. at more than 40 % – one of the three criteria that the index is built on. registering property. South Asia has maximum number of hungry people in the world followed by sub-Saharan Africa. The GHI ranks countries on a 100-point scale. India has been ranked lower at 179 in terms of ease of starting a business in the 2014 list at a time when its government is making efforts to improve the country’s business climate. getting credit. This has been the trend even among SAARC countries too. while India showed a 34 per cent improvement in the same period. and 100 is the worst. Child underweight: the proportion of children younger than the age of five who are underweight (low weight for age reflecting wasting. it continues to languish far behind other emerging economies. Calculated each year by the International Food Policy Research Institute (IFPRI). although neither of these extremes is reached in practice. Page 53
http://insightsonindia. and social status of women are major causes of child under-nutrition in this region. India moves two places higher in Global hunger index (GHI) Though India has shown a marginal improvement in its ranking from 65(in 2012) to 63 (now) in the GHI.9 in 2012 to 21. India ranks 101 on gender gap index India was ranked 101 out of 136 countries on a global gender gap index. prey availability. India has one of the highest prevalence of children under five who are underweight. dealing with construction permits. Zero is the best score (no hunger). percentage of the population (reflecting the share of the population with insufficient calorie intake). based on this criteria India was placed at 177th spot. educational. Courtesy -ifpri website India slips in ‘ease of doing business’ list According to the World Bank. Criteria for ranking: The ranking of countries are based on various parameters including starting a business. regional and industry agendas. enforcing contracts and resolving insolvency. Brazil. Cuba. political.

WEF website
http://insightsonindia. partisan or national interests. and headquartered in Geneva.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Klaus Schwab is the Founder and Executive Chairman Courtesy.com
Page 54
. the Forum is tied to no political.2013
Incorporated as a not-for-profit foundation in 1971. Switzerland.

The main purpose of the IUCN Red List is to catalogue and highlight those plants and animals that are facing a higher risk of global extinction (i. and on plants and animals that are either close to meeting the threatened thresholds or that would be threatened were it not for an ongoing taxon-specific conservation programme (i. It was renamed as International Union for Conservation of Nature and Natural Resources in 1956 with the acronym IUCN. Endangered and Vulnerable).. New Zealand and other countries have sought a sanctuary in the pristine waters of the Ross Sea for the past decade.e. Jerdon’s Courser and Siberian Crane. sustainable development and food security. The IUCN Red List also includes information on plants and animals that are categorized as Extinct or Extinct in the Wild. The IUCN Red List of Threatened Species provides taxonomic. in Switzerland. and New Zealand. IUCN is the world’s first global environmental organization.34 million sq. Progress on the sanctuary has already been very slow.S. A proposal for a larger sanctuary failed in July (2013) when Russia Page 55 The IUCN Red List of Threatened Species was founded in 1963.com
. is the world’s most comprehensive inventory of the global conservation status of biological species. Australia. Uncertainty clouds over the plan for largest marine sanctuary The U. Courtesy – IUCN website P. This system is designed to determine the relative risk of extinction on the Red List of threatened species published by IUCN (International Union for Conservation of Nature). km sanctuary would be twice the size of Texas and the world’s largest stretch of protected ocean. are Near Threatened).S. government shutdown is threatening a long-awaited deal to create the world’s largest marine sanctuary in Antarctica. they might not make it to the negotiating table.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . smaller proposal when the nations that regulate Antarctic fishing meet in the last week of October...2013 ECOLOGY Great Indian Bustard under threat The Great Indian Bustard is currently listed under the category of Critically Endangered birds. 2013 in Hobart. Prabhakarani – recently reported from Kerala have been included http://insightsonindia. and there are hopes that previous objectors Russia and Ukraine will agree to a new. near Geneva.e.S: The highlighted ones are the categories into which the threatened species are grouped under. is among the most enthusiastic proponents.. conservation status and distribution information on plants and animals that have been globally evaluated using the IUCN Red List Categories and Criteria.saving forests is the only way of saving the birds. It demonstrates how biodiversity is fundamental to addressing some of the world’s greatest challenges such as climate change. highlighting the need for their conservation and preservation. The nations that make decisions about Antarctic fishing — 24 countries plus the European Union (EU) — do so only by unanimous agreement. Forest Owlet (found in Maharashtra) all the four are on the verge of extinction. Way forward: The government should declare incentives to people for spotting bustards. Courtesy – IUCN website Freshwater shrimps face extinction The researchers have revealed that. are Data Deficient).
More about IUCN: IUCN was founded in October 1948 as the International Union for the Protection of Nature (or IUPN) following an international conference in Fontainebleau.e. There are less than 250 bustards left in the country. those listed as Critically Endangered.e. The U. Forest Conservation is a must. One cannot have breeding programmes to compensate for shifting them out of their (bird’s) original habitat. What is Red list? Community participation (local people) is a must in conservation of the endangered species.S. change of land use from grassland to farmland has been a major threat. information that is crucial for an assessment of conservation status.S. on taxa that cannot be evaluated because of insufficient information (i. water pollution in rivers is posing a threat to the freshwater shrimps in Kerala Two shrimp species – Macrobrachium Madhusoodani and M. Today it is the largest professional global conservation network The Union’s HQ is located in Gland. add to it Poaching is another major threat. France. Though U. Both the species have been included in the Data Deficient category of the Red List. Reasons for endangerment The erosion of the habitat i. indicating that little or no information is available on their abundance and distribution. Other critically endangered birds in India include the Pink-headed Duck. the 1. in the 2013 ‘Threatened Bird’ list by the International Union for Conservation of Nature (IUCN). Mission: Conserving biodiversity is central to the mission of IUCN. Jointly proposed by the U.

Source – Hindu Newspaper
http://insightsonindia.com
Page 56
. which have fishing interests in the region. The U. reducing the sanctuary’s proposed size by 40 %.S. Those areas would come with less stringent protections than those in the Ross Sea proposal. 2013 the Antarctic nations also plan to consider a separate proposal to create a series of smaller marine reserves in East Antarctica.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . raised objections. and New Zealand revised their plans. In the last week of October.2013 and the Ukraine.

S. a luxury the Indian probe will not enjoy. this one will have fairly long flight regime of 43 minutes in respect of this. The dry run will demonstrate mission-readiness. is to stare at the space between the Earth and the Sun to plot the tracks of the thousands of asteroids moving there. Scientists discover DNA body clock A U. why this happened was “a research problem” that remains to be investigated. scientist has discovered an internal body clock based on DNA that measures the biological age of human tissues and organs. owing to a fuel leak.e. Unlike previous missions. At first spacecraft is injected into an elliptical path around the earth in a geocentric phase.2013 SCIENCE & TECHNOLOGY ISRO gearing up for Mars Mission on November 5 The Indian Space Research Organisation (ISRO) will initiate a dry run of the Mars Orbital Mission-‘‘Mangalyan’ on board the PSLV C25 that is scheduled for lift-off from the spaceport (Sri Harikota) on November 5. Significance/Importance of the telescope The European Space Agency’s (ESA) 800 million pounds probe will become the Earth’s first early warning system against asteroid impacts — even though it lies centuries ahead. 2013.2 km per second. to develop technologies required for design. a rocket considerably more powerful than the PSLV. Moon.S. leading to the lift-off. ‘Gaia’ to detect killer asteroids The powerful Gaia space telescope designed to create a 3D map of stars in the Milky Way will also detect killer asteroids on its collision course with Earth. Outlining the spacecraft’s course accurately requires elaborate modeling. the GSLV D5 mission on December 15. The clock shows that while many healthy tissues age at the same rate as the body as a whole. the orbiter must repeatedly fire its own liquid propellant engine. Mars. PSLV C25. The effect of Earth’s gravity as well as that of the Sun. The next GSLV mission would switch to a better aluminium alloy material for its propellant tanks. it will become the first Indian spacecraft to cross Earth’s escape velocity of 11. Mars and the Sun form an angle of 44 degrees — can offer substantial minimum energy opportunities and occur only at intervals of about 780 days. The expert committee had attributed the fuel leak (in the previous mission) to stress corrosion cracking of the tank filled with propellants.The mass at lift-off is 1. The Mars Orbiter mission would also generate national pride and excitement in the young minds. MAVEN will be making the first leg of its journey on an Atlas V. To get to Mars. the sun’s radiation usually blinds the telescopes. India would have to look at 201618 for its first interplanetary mission (On December 1. Comparison with US Mars Mission: America’s MAVEN (Mars Atmosphere and Volatile Evolution’ mission) will follow about a fortnight later. management and operations of an interplanetary mission) to reach Martian orbit. According to scientists. then a heliocentric phase.. The spacecraft would intersect the orbit of Mars almost simultaneously. One of the unique features of the mission arises from the larger ‘Argument of Perigee’ in transferring the orbiter from the earth’s orbit to that of Mars. and the success rate has been under 50%.com
.pib Another shot at GSLV with indigenous cryogenic engine After the failure of ISRO’s previous Geosynchronous Satellite Launch Vehicle (GSLV) programme in August. However. This will also pave the way for future scientific missions. There have been only 51 missions to Mars. The primary aim and objective of the Mars Orbiter mission is to demonstrate India’s technological capability (i. with the next window possible only in January 2016 and then in May 2018. 450 crore. predominantly by the U. and bring a strategic advantage to India.340 kg. However. India has made a bold attempt to “engage in meaningful scientific experiments” on a relatively modest budget of about Rs. the satellite would be injected into trans-Martian orbit and begin a long cruise of 300 days). such a rare trajectory — that occurs when the Earth. planning. some of them age much faster or Page 57
http://insightsonindia. the threshold beyond which Earth’s gravity can no longer pull it back( The insertion into Martian orbit is expected on September 24. 2014) This would help ISRO in investigating the Martian atmosphere for traces of methane (which are signs of biological origin or geological origin) to determine signs of life. where the flight path is roughly one half an ellipse around the sun. the two Martian moons and the other planets are among the many factors that needed to be incorporated in the calculations. featuring the most high-powered video camera ever built. One of the important tasks of the telescope. The dry run will simulate the entire command sequence of the eight-and-a-half hours of the countdown. both Mangalyan & MAVEN would follow different paths to their destination.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . would be on its silver jubilee flight after achieving a remarkable success rate of 96 %. Astronomers have not been able to spot such asteroids because they orbit between the Earth and the Sun. barely six days before the PSLV rocket actually zooms away into space. These asteroids are regarded as the most dangerous because their orbits often cross the Earth’s orbit. This cost-effective mission would showcase Indian capability to reach and orbit around the red planet. ISRO is all set to have another try at its indigenous cryogenic upper stage Geosynchronous Satellite Launch Vehicle (GSLV) programme. Russia and the European Union consortium. Significance: In doing so. Hence missing the date means.. Courtesy. It will be launched in November. It will be able to put the spacecraft on a direct course for the Red Planet.

the Milky Way forms only two to three stars per year. the French had offered to install their MESMA AIP on the Indian Scorpenes. The researchers said that the galaxy seen as it was when the universe was only about 5% of its current age of 13. the DRDO has identified several areas. In the global marketing. on average appearing two years older. the female breast tissue aged faster than the rest of the body. The air-independent propulsion (AIP) system being developed by the DRDO would be integrated into the Scorpene submarines being built at Mazagon Dock based on transfer-of-technology. the new galaxy z8-GND-5296 is forming stars extremely rapidly producing each year about 300 times the mass of our Sun. It should be noted here that China already possessed such a capability. India has attained total indigenization in sonars and radars and its ship-borne sonars are now being exported to Myanmar. India would need around 80 to 100 satellites in the long-run to be able to ensure a high degree of maritime domain awareness in the entire Indian Ocean region (IOR). since this is a step towards indigenization of the defence technology. including one of Indian-origin. Diseased tissues also aged at different rates. Ammunition for tanks and artillery guns for instance was one such area. with some many tens of years “older” than healthy tissue in the same person. a process when they are most vulnerable to attacks. expendable satellites that could be swiftly deployed on demand. The age of diseased organs varied hugely. with around 19 satellites already keeping a watch over the Indian Ocean. the mechanisms behind the clock will help them understand the ageing process and hopefully lead to drugs and other interventions that slow it down. with cancers speeding up the clock by an average of 36 years.com
Page 58
. ‘No country can progress by importing defence material and equipment’ and therefore. DRDO would take part in the Aerospace and Defence Exhibition-2013 to be held in Seoul (Korea). Defence Research and Development Organisation’s (DRDO) would export military products to friendly nations. According to the team. By comparison. There was need to launch lowcost.8 billion years. Conventional submarines devoid of AIP are required to surface once in a few days to recharge their batteries.It would showcase Akash surface-to-air missile. This has been hailed as a groundbreaking initiative. where indigenization could be done in a big way.2013 slower. according to the clock. More about AIP: AIP systems play a vital role in considerably enhancing the underwater endurance of conventional diesel-electric submarines. Light Combat Aircraft Tejas and Pragati surface-to-surface missile at the exhibition.
http://insightsonindia. This provides a snapshot of the early universe.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . DRDO to go global and its indigenization quest In the near future. have discovered the most distant galaxy ever seen as it was 700 million years after the Big Bang. According to the Researchers. For instance. Most distant galaxy in universe discovered Scientists. Scorpenes being French-origin submarines.

lead damages the brain and central nervous system to cause coma. Adults are at increased risk of kidney disease and raised blood pressure.
http://insightsonindia. These effects are believed to be irreversible. The cost of replacing lead paint means people living in older. convulsions and even death. has set a target of 70 countries by 2015. Overall. Worldwide. children and women of reproductive age. The WHO has identified lead as one of the 10 chemicals causing major public health concern. It includes adopting regulations and procedures to eliminate the use of lead decorative paints and providing information to the public on renovation of homes where lead paint may have already been applied.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . and called upon countries to strengthen national action to eliminate lead paint. 30 countries have already phased out lead paint use. It is estimated that 1. and this disproportionately affects economically-deprived communities. co-led by the WHO and the United Nations Environment Programme.2013
HEALTH WHO alarm on lead poisoning among children The World Health Organisation has warned against devastating health consequences of lead poisoning.com
Page 59
. The Global Alliance to Eliminate Lead Paint. lead is now known to produce a spectrum of injury across multiple body systems. Mouthing lead-painted toys and other objects also exposes them to lead. poorly maintained housing are particularly at risk. Impact of Lead Exposure At high levels of exposure. lead affects brain development. In particular. which cause no obvious symptoms and which were previously considered safe. behavioural changes such as shortening of attention span and increased antisocial behaviour. particularly for children. At lower levels of exposure. 99% of the affected children live in low and middle income countries Lead paint may be found in home. and reduced educational attainment.000 deaths every year result from lead poisoning and lead paint is a major contributor. furniture and other interior surfaces creates contaminated dust that young children easily ingest. Decaying lead paint on walls. resulting in reduced IQ. furniture and on other objects. on toys.43. Its use creates a health problem for many years into the future. Children who survive poisoning are often left with intellectual impairment and behavioural disorders. and lead requires action by memberstates in order to protect the health of workers.

250 crore. which was created in the year 1956. In line with the nature of the REIT to invest primarily in completed revenue-generating properties. Under this programme IFC will issue rupee-linked bonds. subject to the condition that the minimum size of such asset is not less than Rs. Listing of units would be mandatory for all REITs.1. and pave the way for an
http://insightsonindia. it has been mandated to distribute at least 90 per cent of the net distributable income after tax of the REIT to investors. It prescribes a minimum initial offer size of Rs. More about IFC IFC is a member of World Bank Group. a new investment avenue. the REIT would raise funds through an initial offer. asset management services to encourage private sector development in developing countries.5 billion of IFC’s committed investment portfolio as of June 2013.000 million tonnes. signed between the People’s Bank of China and the European Central Bank (ECB).1. The main aim of the policy is to ensure greater transparency (which was earlier missing in the auctioning process and this had led to the 2G Scam).INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . It offers investment services. The deal. and benchmarking of coal sale prices.com
Page 60
.000 crore. On the approval of the methodology. To ensure regular income to the investors.000 crore. has announced the launch of a $1 billion offshore rupee bond programme to strengthen India’s capital markets and attract greater foreign investment (FDI & FII). a member of the World Bank Group. REITs have been allowed to invest in the properties directly or through special purpose vehicles. “it has been mandated that REIT shall have control over the SPV so that the interest of investors of the REIT are not jeopardized.
IFC launches $1 billion bond programme for India The International Finance Corporation (IFC). Investment up to 100 per cent of the corpus of the REIT has been permitted in one project. and use the proceeds to finance private sector investment in the country. wherein such special purpose vehicles (SPVs) hold not less than 90 per cent of their assets directly in such properties. and minimum public float of 25 per cent. The REIT would not be allowed to invest in vacant land or agricultural land or mortgages other than mortgage-backed securities and the REIT shall only invest in assets based in India. transparency and to ensure adequate public participation in the real estate sector. The agreement lasts three years and can be extended if both parties agree to it
What is currency swap? What is the advantage of this arrangement? A currency swap is a foreign-exchange agreement which involves exchange of principal and interest of a loan in one currency for the same in another currency. with an estimated reserve of 2. Coal blocks will now be put for auction after the Environment Ministry reviews them. more than any other country. it provides for upfront and production-linked payments. India accounted for $4. alternative source of funding for Indian companies and would also establish an Indian rupee benchmark in the global markets. It has the following advantages: To reduce exposure to exchange rate fluctuations To secure cheaper debt (by borrowing at the best available rate regardless of currency and then swapping for debt in desired currency using a back-to-back-loan) Coal block auction soon The first ever auction of coal blocks to the private sector is likely to take place in December as the Cabinet has already given its nod for the methodology for auction. Goal of IFC 1) 2) End poverty by 2030 Boost shared prosperity in every developing country
China. Six explored blocks. and once listed. in such cases. it could subsequently raise funds through follow-on offers. advisory services. it has been allowed to invest the remaining 10 per cent in other assets. a major step in pushing international use of the Chinese currency yuan. After registration. the draft has mandated that at least 90 per cent of the value of the REIT assets should be in completed revenue-generating properties. This is said to be the largest offshore rupee market. to ensure that initially only large assets and established players enter the market. The offshore Bond program will help in bringing depth and diversity to the offshore rupee market. The Draft guidelines are stated below: The Real estate trusts must have minimum asset size of Rs. EU sign euro currency swap pact China and the European Union signed a 350 billion yuan (euro 45 billion) currency swap agreement. However. in auctioning of the explored blocks.2013 BUSINESS & ECONOMICS SEBI’s guidelines for the Real Estate sector The Securities and Exchange Board of India (SEBI) has come out with draft guidelines for Real estate investment trusts (REIT). aims to support bilateral trade and protect financial stability. will be auctioned in the first phase. To provide flexibility. and bidders have to agree to a minimum work programme. The objective is to ensure adequate public participation and float in the units. The above guidelines are in line to provide liquidity.

The Indian Telegraph (Amendment) Act. Keeping in mind the inadequacy of the market mechanism to serve rural and inaccessible areas on one hand and the importance of providing vital telecom connectivity on the other. The first meeting of the G20 Leaders took place in Washington.
Indian Pharma and regulatory norms In the recent past. Thus normal market forces alone would not direct the telecom sector to adequately serve backward and rural areas. 2008. 80% of international global-trade. Petersburg.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . 84% of all fossil fuel emissions are produced by G20 countries Courtesy –G20 website The recent G20 summit was held on Sept 5th and 6th. including provision of finance for ongoing projects. It was created in 1999 in response to the Asian Financial Crisis in 1997. Larger investments in infrastructure in emerging economies would increase the potential of these countries to grow more rapidly in the medium run. most countries of the world have put in place policies to provide Universal Access and Universal Service to ICT.C. The theme was “growth and employment”. Panel for entrusting the task of solarisation of towers in rural areas to BSNL A panel constituted by the Department of Telecommunications (DoT) has recommended that state-run BSNL be entrusted the task of solarisation of the telecom towers in areas where there is acute shortage of power in rural areas The funding would be supported from Universal Service Obligation Fund (USOF). As a result the premier forum acquired its current name and significance. D. which otherwise introduce inflexibility. 2013 at St. Special windows need to be created in the World Bank and other multilateral development banks (MDBs) for ensuring finance in support of infrastructure development.
What do you mean by USOF? Apart from the higher capital cost of providing telecom services in rural and remote areas. G-20 is the right platform to coordinate various stakeholders. Russia. 2/3 of the world’s population lives in G20 member countries. including governments. sustainable growth. which face a sudden scarcity of funds owing to volatile capital flows. It is a group of finance ministers and central bank governors from 20 major economies – 19 countries and the European Union. Courtesy: Ministry of Communication & IT
More about G-20 The Group of Twenty (G20) is the premier forum for international cooperation on the most important issues of the global economic and financial agenda. on November 14-15.. Why do we need Infrastructure financing? This would play a key role in sustaining the global recovery and rebalancing. At the G-20 meeting of Finance Ministers.com
Page 61
. where the Leaders agreed to an action plan to stabilize the global economy and prevent future crises. Promoting financial regulations that reduce risks and prevent future financial crises.
http://insightsonindia. which reflected the needs of the current global economy. The aim of such a provision should be to create mechanisms which can increase the flow of infrastructure financing at times when other investments are slowing down. Role of IFC (International Finance Corporation) in infrastructure financing was also emphasized to help catalyse private sector flows into the sector. Access to this window should be beyond the normal country limits.
Modernizing international financial architecture. the private sector and multilateral development banks for investment in developing countries through innovative ways to recycle global savings and development of viable strategies for infrastructure investment. India has asserted that. particularly in emerging and developing economies has been appreciated by India and other countries alike. especially the ones that have large surpluses. 2003 giving statutory status to the Universal Service Obligation Fund (USOF) came into existence in December 2003. This crisis increased the need for a more inclusive and balanced global economic structure which emphasized on greater role to the emerging nations. the Indian pharmaceutical industry has been the subject to increased scrutiny by regulatory bodies worldwide. G20 members represent almost: 90% of global GDP.2013 India asks World Bank to ensure Infrastructure Development finance A proposal to set up a new and dedicated financing facility called the Global Infrastructure Facility (GIF) at the World Bank to serve the financing needs for infrastructure. and would also contribute to a much needed global demand in the short-run. The objectives of the G20 refer to: Policy coordination between its members in order to achieve global economic stability. these areas also generate lower revenue due to lower population density. low income and lack of commercial activity.

INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .
http://insightsonindia.com
. fuel and manufactured products. It consists of 676 items. which excludes factors such as food and energy costs. The indicator tracks the price movement of each commodity individually. CPI indicates the average price paid by households for a basket of goods and services. Central Statistics Office (CSO). Material handling also plays a crucial role in the development of infrastructure to help meet time and cost. Indian companies accounted for 12 per cent of the warning letters issued by US FDA. 40 % or more have been unintentional offences. Though sectors such as port and power and steel mills were embracing modern technology. was at 6. WPI is released on monthly basis. How is WPI different from consumer price index (CPI)? While WPI represents the wholesale prices of goods. The size of material handling industry in India is Rs. pilferage or spillage during transit. there would be more demand of minerals.000 crore growing by 15-20 per cent a year. As the name suggests it does not take into account the price at which consumers buy goods but on the wholesale basis. changes in material handling process can help companies save a minimum 10 % of their materials that go waste or get lost during transit. This is so because in Western economies food and energy availability are not major problems of masses while in countries like India they are very important.46 % in September. companies provide least priority to material handling but blame it for any crisis.1 per cent in August and 5. The rationale of having WPI is to know the demand and supply condition of goods included in the economy. then the benefit would be enormous. Material wastage plagues industry According to the experts. Possible measures to be taken(by the Indian pharma) : What is Headline inflation? Its significance? With the stringent regulations. Ministry of Statistics and Programme Implementation releases CPI with base year 2010 for all India and States/UTs separately for rural. Higher food prices impact WPI & Inflation Headline inflation also called as WPI inflation is a measure of the total inflation within an economy and is affected by areas of the market which may experience sudden inflationary spikes such as food or energy. based on the wholesale price index (WPI). urban and Page 62 Rise in food prices pushes Headline inflation to a seven-month high of 6. Based on this individual movement. USA accounts for 30 % of India’s pharmaceutical exports of $ 3 billion and this is growing at 18-20 % per annum. It is also called Top-line inflation. Source -Wikipedia What is WPI? WPI is a price index is a measure of Inflation (general rise in the prices of goods) representing the wholesale prices of a basket of goods. It is the onus of the regulatory authorities to communicate the rationale of the prescribed processes that are put in place. the WPI is determined through the averaging principle.S are on the increasing trend. it is time that domestic industry must get its act together particularly in compliance systems and must invest more in processes. Inflation. material handling in foodgrains and fertilizers remains an area of concern. all the 676 items are broadly classified into food.40 per cent in September over the same month last year.15. The need of the hour is to optimise the processes and it was critical during the current turbulent times.2013 The US FDA (Food and Drug Administration) is one regulator that requires the highest standards of safety and quality. Since India’s exports to U. Though according to Indian companies.6 per cent of gross domestic product (GDP). As a result. riding on the back of a whopping 323% increase in the price of onions. The mitigation of risks requires much better appreciation of the drug safety rules and a clearer understanding of the processes. Why Material wastage needs to be given due importance? Material wastage is rampant in coal and iron ore. Headline inflation is a more useful measure for households as it gives idea of rise in cost of living while central banks prefer to deal with core inflation as it is less volatile in nature and better reflects effects of supply and demand on GDP. Normally. there are likely risks and this has led to increased vigilance.85 per cent in July. Hence it is time that Indian organizations give it’s due to this long neglected area as it has spill over effect on other sectors as well. As consumption goes up. energy and water. It should also be noted that ‘manufacturing and mining’ sector is 1. This is due to contamination. The latest data released by the government has put the food inflation at 18. This wastage is often being neglected and henceforth organisations must provide due importance to material handling to improve costefficiency and bottom lines. followed by an all-round hike in the prices of other fruits and vegetables. So emphasis should be given on energy-efficient systems that can consume less water while handling of material. This differs from core inflation (also called non-foodmanufacturing inflation or underlying inflation). headline inflation may not present an accurate picture of the current state of the economy as it doesn’t take account of service sector. It is also used to measure the inflation. The high increase in onion and other food & vegetables have made life difficult for the common man. if companies are able to plug this loophole. The current base year for WPI is 2004-05. Most Western countries use core inflation as a measure of inflation while countries like India prefer headline inflation as measure of inflation.

According to the draft SEBI (Settlement of Administrative and Civil Proceedings) Regulations. The Parliamentary Standing Committee of Commerce has recommended a blanket ban on FDI in existing pharma projects and urged that further takeover/acquisition of domestic pharma units be stopped. comprising a retired judge of a High Court and three external experts from the securities market or areas connected to it. The banking sector reforms. by the President in September. terms of settlement might include payment of a settlement amount and other related costs.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . particularly those facilitating entry of foreign banks in India in a ‘big way’. including monetary policy framework that the RBI is going to implement in the next few years. has proposed new norms for settlement of administrative and civil proceedings against suspected market defaulters. Comparison of WPI & CPI WPI Weightage o Food products Weightage of Energy products 24.3% Base Year Total commodities 2004-05 676 2010 200
SEBI moots tighter settlement norms for defaulters The Securities and Exchange Board of India (SEBI. settlements cannot be sought for cases involving non-compliance to SEBI orders. At preset. Also. RBI Governor Raghuram Rajan has said. 2013. 2013. foreign banks will get more opportunities to expand in India. Rural areas are not included). The new norms have been proposed pursuant to promulgation of the Securities Laws (Amendment) Second Ordinance. These new indices are now compiled at State / UT and all India levels. the access to medicine in India could adversely impact production. By setting up wholly-owned subsidiaries. the foreign country should provide the same platform to the Indian banks. but also to make it more transparent. insider trading and fraudulent and unfair trades. with 2010 as the base year. SEBI has also proposed to constitute a high-power advisory committee.i. However. The new series. This would lead to ‘dependency syndrome’ – India Page 63
http://insightsonindia. The disgorged illegal gains. and other appropriate directions. Housing (Only for Urban.capital market regulator). this new series will become comparable only in 2013 when the data for 2012 will also be available for comparison. But there are two conditions: 1) Reciprocity.5% The settlement amount will be credited to Consolidated Fund of India (CFI). if any. Disagreement over FDI in pharma There is a disagreement over FDI in pharmaceuticals companies among Finance. except in cases of serious violations such as illicit pooling of funds from investors.com
. bedding and footwear. if the policy continues to be implemented in the existing manner. Banking sector reforms: Liberalised Policy on foreign banks soon The Reserve Bank of India (RBI) will soon come out with new rules for the entry of foreign banks that may even allow them to take over Indian banks. Health & Family Welfare ministries and Prime Minister’s Office (PMO). Present CPI takes into account the consumption patterns of all segments of the population. including in Africa.. foreign banks in India operate as branches of the foreign parent. Access – There should be only one route either to have a branch or a subsidiary. Fuel and light. but not both
Weightage of Miscellaneous Items Services not included 26. also includes services. All the three ministries have strongly voiced for urgent reversal of the current policy which according to them threatens access to affordable medicines not only in India but also developing countries. is part of the five pillars of reforms. Rational behind the Ministries argument is that. These indices are available for five major groups namely Food. closure of business. to consider matters for settlement of defaulters.2013 combined(rural+urban)every month with effect from January. Under the new norm. 2011. More freedom would be given on branching.e.
2)
That is primarily to simplify the regulatory function. beverages and tobacco. This will give wider powers to SEBI within the legal framework The list of violations that cannot be settled has been expanded widely under the new norms. Commerce. 2013. availability and prices. while legal costs will go to the SEBI General Fund. will be credited to the Investor Protection and Education Fund of SEBI. whereas the PMO is for continuation of the policy. besides state-wise data. voluntary suspension of registration. Clothing.3% 15% (approx) CPI 50% (approx) 9. and Miscellaneous. and face restrictions on the number of branches they can set up in the country. The CPI inflation series is wider in scope than the one based on WPI as it has both rural and urban figures. unlike the WPI index. which also provide for the involved entity to file settlement plea within 60 days of the show-cause notice served by SEBI. an entity cannot seek settlement of any proceedings if the alleged default has been committed within two years of an earlier settlement involving them or if the case is already pending before a court or tribunal.

India has to take necessary steps to curb this deficit. exporters would take advantage of improvements in external competitiveness following the depreciation of rupee. and power and telecom imports from China gloomy. Around 70% of India’s intermediates are imported from China. Reverse mortgage scheme: Safety net for Senior citizens The government has extended the period of the reverse mortgage facility with an aim to make the scheme more attractive for senior citizens. but cautious approach has to be taken since pharma is a sector impacting life and health of the people.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . India’s GDP growth slowed to 5 per cent in the year ended March from an average of 8 per cent over the past decade. Both sides have set a target of $100 billion by 2015. The scheme now has been extended from 20 years to the life of the person. the International Monetary Fund (IMF) too. Finland sign MoU to produce ethanol India and Finland have signed a pact to set up a pilot project to produce ethanol. India for settling Nuclear supplier liability fears via insurance package The new insurance package which the public sector General Insurance Corporation (GIC) is working on would help address the Page 64
http://insightsonindia. in its World Economic Outlook had lowered India’s growth prospects to 4. The major imports of India include machinery.7 billion. The concerns of these Ministries come in the wake of major acquisition of Indian pharma companies during the last few years by MNCs. One proposal.2013 dependent for life-saving medicines either on domestic facilities of MNCs or imports.. As per the scheme. the loan is repaid along with accumulated interest. Some of the high profile ones include the acquisition of Ranbaxy by Daiichi Sankyo.1 % it had projected in April.7 % from 6.300 crore is expected to be commissioned in 18-24 months. bio-chemicals and bio-coal from biomass residual matters.com
. The project would cost around Rs. After 9 months of this year. the period of reverse mortgage loan was 20 years from the date of signing the agreement by the reverse mortgagor and the approved lending institution. the trade imbalance in China’s favour has reached $24. and delayed investment projects would take off in the coming months. India’s trade deficit with China in 2013 is likely to surpass even last year’s record $28 billion. through sale of the house property. with India’s exports to China down by as much as 22. Why has there been a slow-down in the GDP? Though India’s growth potential remains high. made during the recent Chinese Premier’s visit to India was to set up dedicated industrial parks. World Bank cuts India’s growth estimate to 4. India is already import-dependent for intermediates and critical drugs like penicillin. 2013 Recently. FDI is desirable in the production facilities.7 % The World Bank has lowered its forecast for India’s economic growth in the current fiscal year to 4. An amendment has been made on this line to the Reverse Mortgage Scheme. following moves to impose duties and security concerns. seeking funds from banks by pledging his/her residential property.25 % for the current fiscal. Both countries are exploring new avenues to revive the waning ties. there is a large requirement which is not being met by indigenous production. widening current account deficit (CAD). Shantha Biotech by Sanofi-Aventis and Nicholas Piramal by Abbott raising concerns about future access to affordable medicines. The new figures. Widening India-China trade deficit According to the recent data released. This pact would help in production of indigenous ethanol to promote use of clean technologies and cut down the oil import bill. 2008 enables a person above the age of 60 years to avail himself of periodical payments from a lender against the mortgage of his/her house while remaining the owner and occupying the house.e. The project will utilise wheat straw. Hitherto. What is Reverse Mortgage Scheme? The Reverse Mortgage Scheme. high headline inflation. India. The down-trend in trade is mainly attributed to mining bans in Karnataka. With India struggling to diversify exports in other sectors. which is now being burnt and not being put to productive use. The persons availing this facility would also get certain income-tax benefits. have underlined the increasingly skewed trade relationship. power and telecom equipment. Significance of this pact: Since 75 % of India’s ethanol requirements are met through imports. on the borrower’s death or on the borrower leaving the house property permanently. recovery in the manufacturing sector. and increasing pressure on fiscal balances from the depreciation of the rupee could impact the speed of economic recovery. The technology used would all cellulose-based waste products into ethanol. its macro-economic vulnerabilities i.5% in September. between the two countries. However it would bounce back in the second-half of the fiscal since the financial markets would stabilise. Some positive aspects to look forward to: India’s growth will continue to remain subdued due to negative business sentiment and higher interest rates. the future of the trade relationship has appeared increasingly uncertain. whereas China imports iron-ore.

transparent and Page 65
http://insightsonindia.
What is GST? Its significance? It’s Demerits? The Kelkar Task Force on implementation of the FRBM Act.with emerging economies growing rapidly.25% Official statistics from the government of India.S. and Japan doing reasonably. Some States also expressed their reservation to inclusion of ‘entry tax’ under the GST ambit. the Prime Minister’s Economic Advisory Council (PMEAC) and the Reserve Bank of India expect the economy to grow by between 5 % and 5. petroleum products under GST opposed In the revised draft of the Constitution Amendment Bill (to implement GST). But several States have opposed inclusion of petroleum products and liquor under the proposed Goods and Services Tax (GST) regime as the move would severely affect their revenues. Chidambaram has questioned the accuracy of growth forecasts of member-countries put forward by IMF. Europe’s recovery has been marked by surpluses in the current account. The Central Statistics Office (CSO) does give calculations on market prices also but those at factor cost are the usual reference point. India would allow entry of Chinese companies in not only setting up power equipment servicing centres but also equipment manufacturing facilities in India. 2013. This would allay Russian concerns over the Civil Liability clauses in the coming annual summit (20-22nd October) between India & Russia Chinese firms to set up power gear units in India The Union Cabinet has approved a proposal following which China would now be able to setup power equipment service centres in India. The FM has also questioned the value of IMF’s surveillance mechanism. Reliance Power and Shanghai Electric Corporation had signed a $10-billion deal for sourcing equipment for the Indian company’s projects to be set up in 10 years.” while momentum is slowing in countries such as India. the existing system of taxation of goods and services still suffers from many problems and had suggested a comprehensive GST based on VAT principle. But recently IMF’s chief has stated that in many advanced countries.S.5% during fiscal 2013-14.S. by April 2013. which at present attracts 21%. However. inflation and a greater burden of foreign debt. IMF’s assessment of the world economy has changed quite drastically over the past few months. 2013 Speculations have now arisen over this drastic downgrade and the IMF’s methodology of the growth forecasts. according to IMF there was a “threespeed recovery”. from the close quarters. Hence here subsidy or the indirect tax levied by the government is not taken into account. and other advanced countries. 2003 had pointed out that although the indirect tax policy in India has been steadily progressing in the direction of VAT principle since 1986. What is market price? The current prices price at which buyers and sellers trade an asset or service. catering to a number of power projects which are in the process of purchasing power equipment from China or already have that equipment.com
. IMF’s methodology under scanner What is factor cost? The Finance Minister (FM) P. This has led to further speculations from the developing countries. U. has created vulnerabilities. It depends on the demand and supply. especially in India and other developing countries. Against this backdrop. Factor cost is income or output based on the cost of factors of production. even if India’s GDP is expressed at factor cost. leading to rapid currency depreciation. instead of market prices. and French suppliers. which is matched by deterioration elsewhere.6% forecast in July. GST system is targeted to be a simple. China and Brazil. as. the U. According to the memorandum of understanding (MoU). The IMF’s calculation of the national accounts statistics is based on market prices whereas India publishes its estimates on factor cost. Too frequent downgrades in growth estimates impact negatively on market expectations and spread gloom and this would have huge impact especially on the emerging economies. part of the process involves drawing up premium rates for specific parts of a power reactor so that the actuarial burden of any direct or indirect liability in the event of an accident can be quantified in advance and factored into any price negotiations between the Nuclear Power Corporation of India Ltd. and Europe still mired in crisis. The most important change has come from the way major countries have fared since April. In the proposal. for instance. in turn. In 2010. This. drastically lower than its 5. 2013 the Centre had proposed inclusion of petroleum and liquor under the GST.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Inclusion of liquor. Specifically the sharp downgrade of India’s growth forecast for 2013-14.8%. specifically on how it failed to warn member-countries of the possible detrimental consequences of the tapering off of the ultra soft monetary policies of the U. “we are finally seeing signs of hope. the capital flight from India and other countries in the wake of the Fed’s hint of tapering. circulated to the States on September 18. the big emerging economies were in the forefront of recovery and the developed economies were lagging behind.2013 concerns of suppliers and operators over India’s 2010 law on liability. which would be signed in the PM’s next visit to China. In the post-recession period. However. according to IMF it will be only 4. there has been a demand for higher import duty on power gear. However. IMF’s lower forecast for India has to be explained in more satisfying terms than what the numbers suggest. (NPCIL) and its Russian. The IMF’s latest estimate shows that Indian economy would grow by just 3.

com/2013-0813/news/41374977_1_services-tax-state-gst-goods-and-services http://www. set up by the Finance Ministry to suggest measures to prevent economic offences among other things. segment and nature of taxes and taxpayers that should cover methods to encourage voluntary tax compliance. ‘an emerging economy must have a tax system that reflects best global practises. Mandatory cover for public deposits proposed In the backdrop of the Sahara case. would be fined Rs. Besides. the Central Board of Excise and Custom (CBEC). services are used or consumed in production and distribution of goods and vice versa. premium to be paid for such insurance can not be recovered from the depositor and the money has to be paid by the company itself. Increasingly. Integration of various Central and State taxes into a GST system would make it possible to give full credit for inputs taxes collected. and also with banking as well as financial sectors. Under the deposit insurance scheme. The proposed measures. Functions of TARC The terms of reference of the Commission include a review of the existing mechanism of dispute resolution and methods to widen tax base. The term of the 7-member TARC is 18 months. being a destination-based consumption tax based on VAT principle. the Financial Intelligence Unit (FIU). is expected to submit its report in six months. who could be in default. For the consumer. with a further fine for continuing default of Rs.2013 efficient system of indirect taxation as has been adopted by over 130 countries around the world. GST. GST involves taxation of goods and services in an integrated manner as the blurring of line of demarcation between goods and services has made separate taxation of goods and services untenable. The Chairman Parthasarathi Shome. which leads to greater complexities.hindustantimes. administration and compliances costs. However.Ministry of Finance (GoI). The primary benefit of GST. It will review the existing mechanism and recommend measures to enhance predictive analysis to detect and prevent tax and economic offences. Introduction of GST to replace the existing multiple tax structures of Centre and State taxes is not only desirable but imperative in the emerging economic environment. GST would check leakage of revenue and the States should be able to realize tax revenues commensurate to consumption of goods and services within their territory.10.economictimes. It will be provided information and quantitative data of CBDT and CBEC to do statistical analysis for making recommendations. All deposit-taking companies would need to maintain a Deposit Repayment Reserve Account with a scheduled bank and this
http://insightsonindia. Courtesy. the government has proposed mandatory insurance cover for public deposits garnered by companies and hefty penalty of up to 18 % annual interest for defaulters.000. would also greatly help in removing economic distortions caused by present complex tax structure and will help in development of a common national market. TARC is in line with Finance Ministers proposal that. the Enforcement Directorate. also bars the companies from promising huge returns and hefty agent commissions in excess of the prevailing rates prescribed by the RBI for such deposits. What is TARC? TARC is an advisory body to the Ministry of Finance. the companies would need to enter into a contract to insure the total principal amount as also the promised interest component for the depositors.000 for every day of contravention.aspx Tax Reform Commission: Measures to strengthen financial sector The Tax Administration Reform Commission (TARC).indiatimes. TARC would be setup to review the application of tax policies and tax laws and submit periodic reports that can be implemented to strengthen the capacity of Indian tax system’. would be the removal of cascading effect of taxes which acts like a hidden cost and makes goods and services uncompetitive both in domestic and international markets.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . It would provide a stable source of tax revenue and would play a very vital role in sewing India together into one common market. It will recommend a system to enforce better tax mechanism by size.com/business-news/WorldEconomy/Qand-A-What-is-GST-tax/Article1-676174. The TARC will also recommend measures to strengthen interagency information sharing between Central Board of Direct Taxes (CBDT). any violating company and each of its officers and other persons.com
Page 66
. to safeguard investors from fraudulent moneycollection schemes. The premium of the deposit insurance cover would need to be paid by companies themselves and a penalty of 15% annual interest would be slapped on those which do not provide deposit insurance to their depositors. which are part of the draft rules for the new Companies Act. the biggest advantage of the GST would be its transparent character as well as the reduction in the overall tax burden on goods which is currently in the range of about 25-30%.1. Separate taxation of goods and services often requires splitting of transactions value into value of goods and services for taxation. when introduced. you can follow the below link http://articles. PIB For further reading.

SEBI ordered the group to refund this money to investors with 15% annual interest. is based on responses from 13. these conveniences often come at a cost to them and their security. Pound sterling (GBP). The DoT had sought clarifications of some of the recommendations.000 from India. It had also suggested 37 % cut in the reserve price for spectrum in the 1800 MHz band. So far. 2013. which were announced in September. Japanese Yen (JPY). Responding to clarifications sought. 2012-July. deposit taking companies should appoint one or more independent trustees to ensure security for deposit amounts.6 billion Earlier in September. In the last 1 year. it stuck to its stand of not auctioning 800 MHz band in the auction saying there was a large gap in the worth of spectrum in its present use as against its potential use. the average cost per cyber crime victim in India grew 8%( from $192 to $207 during the period)
. The report added that. Courtesy Hindu newspaper What is the Sahara case all about? Between 2008 and 2011. this creates entirely new security risks for enterprises as cyber criminals have the potential to access even more valuable information.022 adults across 24 countries.000 Cr issuing OFCDs (Optionally Fully Convertible Debentures) to roughly 30 million shareholders. Every company inviting deposits should provide for security by way of a charge on its assets. This order was upheld by the Supreme Court. for an amount equivalent to the deposits collected. identity theft. Today’s cyber criminals are using more sophisticated attacks such as ransomware and spear-phishing.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . Australian Dollar (AUD) & Canadian Dollar (CAD). Euro. Banking ombudsman!! The Banking Ombudsman Scheme was launched in 1995 by the industry regulator. the Governor had relaxed norms for banks. In 2011. 2013 to attract foreign funds. and phishing have cost the country $4 billion during August. including 1. banks have brought in $9.6 b in forex India has received over $9 billion from two foreign schemes. SEBI found that under the garb of an OFCD the company was running an extensive parabanking activity without conforming to regulatory disclosures and investor protection norms pertaining to public issues. two unlisted Sahara group companies (SCSCL and SHICL) raised around Rs 18. the RBI. TRAI sticks to its proposal for reserve price cut Telecom Regulatory Authority of India (TRAI) reiterated its earlier recommendations for up to 60 % cut in the reserve price for sale of spectrum in the upcoming third round of auction. TRAI had sent its recommendations on ‘valuation and reserve price of spectrum’ in to the Department of Telecommunications (DoT). Why did SEBI ask Sahara to refund the money? SEBI asked Sahara to refund investors because it felt Sahara was raising money in violation of capital raising norms and certain sections of the Companies Act. which yield them more money per attack than ever before. It was amended in 2006 to The report. online stalking. As per the draft norms. Banks have taken advantage of RBI’s liberalisation of FCNRB and Tier I capital schemes. Further.2013 account would need to have at least 15% of the total amount of deposits. 56 % of cybercrime victims in India have experienced online bullying. The investment can be made in foreign currency itself (as compared to NRO/NRE (Non-Resident external) Accounts wherein investments are to be made in Indian currency only) and the interest earned as prevalent in India. 2013. under the two schemes put together. TRAI reiterated that the auction reserve price for spectrum in the 900 MHz band in some key cities be cut by 60%. and it would not be prudent to take a hasty decision in the matter. and allowed them to raise capital abroad to the tune of 100% of their Tier I (equity) capital. Earlier in September. Also.represents bank. Courtesy – Business Standard Special RBI measures help attract $9. the growing incidents of cybercrimes such as ransomware. The schemes will remain valid till November 30. India appears to be the ransomware capital of Asia Pacific with 11 % victims of this form of virtual extortion.com Page 67 This year’s report further reveals that as consumers become more mobile and connected. What is FCNR (B)? FCNR is an account that can be opened with an Indian bank by a Non Resident Indian (NRI) or a Person of Indian Origin (PIO) in foreign currency of one’s choice. With 66 % of Indian consumers using their personal mobile device for work and play. The major advantage of this account is http://insightsonindia. online hate crime or other forms of online harassment. This reduces the Exchange rate fluctuations. as an expeditious and inexpensive forum for resolution of complaints. and help the country bridge the widening current account deficit (CAD). (B). excluding intangible assets. which is one of the largest global studies investigating the impact of cyber crime on consumers. Also. Cyber frauds cost India $4 billion According to a report released by Internet security solutions provider Symantec. amount secured by way of charge on assets should not exceed the market value of such assets. The government also proposed strict disclosure norms and other eligibility criteria before offering any deposit scheme. 2013 the RBI Governor Raghuram Rajan had announced opening of a swap window facility to encourage banks to lure NRI funds. The foreign currencies can be US dollar (USD).

com
Page 68
. Courtesy – Finance Ministry Tower companies to come under licensing regime Following the government’s decision to allow 100% foreign direct investment (FDI) in the telecom sector. whenever it takes place.S. The Council shall also look into issue relating to financial development from time to time. This will remove ambiguity. including subordinate legislations. Large number of amendments made in these Acts over time has increased the ambiguity and complexity of the system. regulatory gaps and overlaps among the various legislations making them more coherent and dynamic and help cater to the requirements of a large and fast growing economy in tune with the changing financial landscape in an interconnected financial world. The tenure of the Commission is 2 years. they can operate by paying Rs. Federal Reserve and to further address the macroeconomic imbalances. Fed tapering: regulators told to take preventive steps At the Financial Stability and Development Council (FSDC) meet. The scheme covers all banks including regional rural banks and cooperative banks. and preventive measures to be taken Steps to be taken by regulators/government to facilitate the ‘Corporate Distress Resolution Mechanism’ as laid-out in the Companies Act. It will also focus on financial literacy and financial inclusion. There are over 60 Acts and multiple Rules/Regulations in the sector and many of them date back decades when the financial landscape was very different from what is obtaining today. Insurance Regulatory and Development Authority (IRDA) and Pension Fund Regulatory and Development Authority (PFRDA) as other members along with finance ministry officials. the Finance Minister has asked all regulators to take preventive measures and counter steps to buffer the economy from the impact of tapering of Quantitative Easing (QE) by the U.5. Federal Reserve in September. 2013. an inter-ministerial panel. What do you mean by Tapering? Tapering refers to gradual withdrawal of the $85 billion a month bond purchase programme.S. The Council would have one Sub-Committee which would be headed by Governor.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . to bring them in line with the requirements of the sector to achieve harmony and synergy among them. and if approved. including the functioning of large financial conglomerates and address inter-regulatory coordination issues. Courtesy – PIB & Wikipedia
What is Financial Sector Legislative Reforms Commission (FSLRC)? In pursuance to the announcement made by the Finance Minister in the budget of 2010-11 to rewrite and harmonize financial sector legislations. Without prejudice to the autonomy of regulators. will have a bearing on global economy. Mobile tower companies (called IP-I in technical jargon) would now have to pay 8 % licence fee on the revenue earned from telecom services once brought under the licensing regime. 2013. the Department of Telecommunications (DoT) is set for a proposal to bring mobile tower companies under the licensing regime. this Council would engage in macro prudential supervision of the economy. The Commission would simplify and rewrite financial sector legislations. This had become necessary as the institutional framework governing India’s financial sector was built over a century. FSDC (an apex body) was first mooted by Raghuram Rajan Committee in 2008 FSDC was set up in order strengthen and institutionalize the mechanism for maintaining financial Stability and Development. tower firms would have to obtain telecom licence for carrying out their operations. Way forward: Based on the deliberations. At present. In the long term. It was formed to bring greater coordination among financial market regulators. The council is headed by the finance http://insightsonindia.
Impact of tapering off of the Quantitative Easing (QE) in the U.000 to register with DoT. it would help usher in the next generation of reforms.2013 include other services including credit card.S. which was deferred by the U. It will impact fund flows to emerging economies( including India)
What is FSDC? The global economic meltdown in 2008 had put pressure on governments and institutions across globe to regulate the economic assets. RBI. So on this lines. transparency and improved operational efficiency that do not require legislative action. contribute to efficient financial intermediation enhancing the growth potential of the nation. The DoT’s proposal would be placed before the Telecom Commission. The tapering. it has been decided that all the financial sector regulators will finalise an action plan for implementation of all the FSLRC principles relating to regulatory governance. rules and regulations the Govt has notified the Resolution constituting the FSLRC on 2011. Deliberations (discussions) in the Council: The Council deliberated on recommendations of the FSLRC the implementation of the minister and has the Reserve Bank of India (RBI) governor and chairpersons of the Securities and Exchange Board of India (SEBI).

which is more than double the Rs.2013 Earlier.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .1 per cent as of March 2013 — is not helping matters. Many banks are responding to the situation by hiking deposit rates. Significance to the Government: As per government. the approval of the Telecom Commission will be sought to include IP-I in licensing regime. given the higher proportion of noninterest earning weak assets and lower increase seen in their lending rates. Although some of those measures have been gradually withdrawn. Due to weak economic conditions. The Tower and Infrastructure Providers Association (TAIPA). and this trend has continued in the first-half of 201314 as well. Borrowings have been especially high in recent months. clearly pointing towards the need to attract deposits. In the long-term as
Hurdles to include the Tower companies earlier: In order to include IP-I in the licensing regime.
http://insightsonindia.7 % by the end of this fiscal (2013-14) from 4. Due to rising cost of funds.3 per cent. with deposit growth lagging behind at 16 %. net interest margins (NIMs) of banks to decline by 20-25 basis points in 2013-14. particularly PSBs. High inflation has severely impacted inflation-adjusted returns from financial instruments such as deposits. this would lead to over 30% of restructured assets (excluding state power utilities. TRAI estimated that bringing IP-I under the licensing regime will fetch the government revenues of around Rs.900 crore a year. it is expected that. 2013). the situation still remains strained for many banks. and an increase in credit costs led by a rise in nonperforming assets (NPAs). In the wake of slow accretion to deposits. by 50-100 basis points even though credit pricing is also under pressure. which is reflected in the sharp rise in borrowings from RBI’s liquidity adjustment facility (LAF) window.3 per cent a year ago. with upward pressure on cost of funds and lower profitability.3 % a year ago. one of the hindrances was that the FDI limit was 74 % for telecom services. Reliance Infratel and Indus Tower.2 % in 2009-10. from 3. Between 2009-10 and 2012-13. stricter provisioning norms and implementation of Basel-III norms.000 crore between April 2013 and March 2016. the total weak assets in the banking system (gross NPAs plus likely slippage of restructured assets) will shoot up to 5.35. To protect the downside in profitability. Summary: The banking sector will face tough times for the next 12 months. Average daily borrowings increased to Rs. the inherent weakness in restructured assets will be accentuated by the fragile economic environment.13. The AGR (adjusted gross revenue) definition had to be revisited for which a reference may be required to be made to TRAI. More disturbing is the proportion of financial savings (of which bank fixed deposits form 56 per cent) has declined. banks’ will have to focus on garnering retail deposits and minimising slippages from restructured assets by closely monitoring them. The drop in NIMs is expected to be far more sharper in the case of public sector banks (PSBs). For banks. the IP-I can be brought under the licensing regime. Again. Now that the issue has been resolved with 100 % allowed in the telecom sector. On account of increased provisioning on restructured assets alone. the asset quality of the banking system is expected to deteriorate sharply. Keeping this in view. sharp slowdown in deposit growth. The gross NPAs are expected to increase to 4. among others. sharing passive as well as active infrastructure such as optical fibre network and the like. Telecom Regulator Authority of India (TRAI) had recommended bringing telecom tower companies under the licensing regime. propelled by weak demand and liquidity constraints being faced by corporates. only 15 per cent of restructured assets turned NPAs. rising delinquencies. especially as there are no signs of deposit growth picking up ahead of the busy season. These measures led to a spike in short-term money market rates.4 per cent by March 2014. The slowdown in economic growth and entrenched inflation have adversely impacted savings with household savings rate (as percentage of gross domestic product (GDP)) declining to an estimated 22% in 2012-13 from 25. leading retail investors to turn towards physical savings avenues.1. Also there would be sharp increase in slippage from restructured assets. (By contrast. Indian banks’. opposed the proposal on mainly two grounds: 1) 2) FDI limit and definition of revenue on which they would have to pay the licence fee.) Therefore. Weakening asset quality as well as increased provisioning on restructured assets (announced in May 2013) will significantly increase the credit costs for banks.74. Crisil Research anticipates that banks will have to make additional provisions to the tune of Rs. will need significant capital infusion over the next five years.000 crore during 2013-14 (till October 11. faster nationwide roll out of infrastructure. banking credit grew at a compounded annual growth rate (CAGR) of 19 %. Despite restructuring. Credit growth has been far ahead of deposit growth over the last three years. following the global financial crisis of 2008. and IP-I was allowed with 100 % FDI. bringing mobile tower companies under the licensing regime will help in reducing cost of telecom services. pushing corporates to resort to bank borrowings for funding their working capital requirements. this worrisome decline in deposit growth has severely impacted their liquidity. due to the liquidity draining measures announced by the RBI to shore up the rupee. especially on shorter-term deposits.000 crore borrowed in 2010-11. Consequently. The fall in CASA (current account savings account) deposit base — 33 per cent as of June 2013 compared to 34. the industry body representing mobile tower companies such as Bharti Infratel. Weak economy exerts asset quality pressure on banks The profitability of Indian banks is under increasing pressure due to subdued growth in interest income. which are likely to receive sovereign support from the Central and State governments) to slip into NPAs in the next two years. and contribute to the government’s revenue in terms of licence fee. the suggestion had been opposed by industry players.com
Page 69
. However. during the two-year period. The systemic credit-deposit ratio as of September 2013 was at an all-time high of 78. PSBs will bear the brunt of the increase in provisioning.

Courtesy. The collateral used for repo and reverse repo operations are Government of India securities. Bhave. This external scrutiny was built into the procedure. The rate charged by RBI for this transaction is called the repo rate. Troublesome pressure from the economy can lead to a sharp increase in non-performing loans and often results in massive write-downs.com/Banking-Tutor/Basel-iii-AccordBasel-3-Norms.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . voluntary regulatory standard on bank capital adequacy. Courtesy.ndtv. and seeks to improve the banking sector’s ability to deal with financial and economic stress. former SEBI Chairman C.e. reverse-repo rate (RR)? Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through repurchase agreements. Non-performing assets are problematic for financial institutions since they depend on interest payments for income. Reverse repo operation therefore absorbs the liquidity in the system. Once the borrower has failed to make interest or principal payments for 90 days the loan is considered to be a non-performing asset. The committee has three other members. and NachiketMor. Courtesy -Wikipedia
What is NPA (also known as “non-performing loan”)? A classification used by financial institutions that refer to loans that are in jeopardy of default. former RBI Deputy Governor UshaThorat. Repo operations therefore inject liquidity into the system.allbankingsolutions. Reserve Bank of India (RBI) Governor Raghuram Rajan has said that a few licences will be issued by January 2014. The interest rate paid by RBI is in this case is called the reverse repo rate. Oil bonds have been also suggested to be included as collateral for Liquidity adjustment http://insightsonindia. facility. banks borrow money from Reserve bank of India to meet short term needs by selling securities to RBI with an agreement to repurchase the same at predetermined rate and date. Repo or repurchase option is a collaterised lending i. Repo rate (RR). with capital requirements all set to shoot up with the stagewise implementation of Basel-III. B. It is a global.Investopedia
What are Basel-III norms? Basel III is part of the continuous effort made by the Basel Committee on Banking Supervision to enhance the banking regulatory framework.Investopedia For more information on Basel III norms refer the below link: http://profit. A focus of Basel III is to foster greater resilience at the individual bank level in order to reduce the risk of system wide shocks. improve risk management and market liquidity risk (strengthen the banks’ transparency) It builds on the Basel I and Basel II documents. former ICICI Bank official.2013 well.com/news/corporates/article-what-are-basel-iiiguidelines-303293 http://www. providing adequate returns to equity shareholders by judiciously deploying capital would become a critical differentiator across banks. after the RBI has scrutinized them initially.
Courtesy – Hindu Newspaper
What is LAF.shtml The tough task ahead for new bank licences LAF consists of repo and reverse repo operations. An important step towards that end has been the setting up of a committee headed by former RBI Governor Bimal Jalan to vet the 26 eligible applications. Reverse repo operation is when RBI borrows money from banks by lending securities. It has been the intention of the RBI to keep the process as free from controversy as possible. LAF is used to aid banks in adjusting the day to day mismatches in liquidity (Basically it is used to moderate short-term liquidity fluctuations)
Page 70
.com The process for issuing new bank licences is gathering pace. who is into financial inclusion in a big way.

Controversial issues Capital infusion credit positive for banks In any case. in its 2nd quarter review of the monetary policy for the current financial year has hiked interest rates by 0. the process of awarding a new bank licence was never expected to be smooth. The revival of large stalled projects and the pipeline cleared by the Cabinet Committee on Investment would help in more investment and increase in overall activity towards the close of the year With regard to the external sector.
http://insightsonindia. Foreign capital will be allowed to an extent of not more than 49 % Obviously.S. and will lend itself to controversy. Among the several controversial issues. The RBI also lowered its expected GDP growth to 5 % for this fiscal from 5. is likely to ease liquidity pressure. The FMC had told the court that it would not allow NSEL to accept or permit any rematerialization request. the question is do we have a regulator and rules to regulation to take on such banks should such an eventuality arise. The ‘recapitalisation’ is credit positive because it would ensure that the public sector banks will meet regulatory capital requirements while maintaining loan growth to economically important sectors.50% earlier.S. On this regard Forward Markets Commission (FMC) said that it would soon obtain forensic audit of e-series of the National Spot Exchange Ltd. For instance. Courtesy Hindu Newspaper FMC orders forensic audit of NSEL Ratings agency Moody’s Investors Service. ECONOMICS Steps to counter inflation: RBI To counter rising inflation RBI. At present. an FIR filed against Kumar Mangalam Birla.000 crore of capital in staterun banks was credit positive.5 % earlier. had to meet the RBI’s stringent norms for setting up new banks. Checking the credentials of promoters is not going to be easy at all. the rate at which banks borrow from the RBI) will go up to 7. in his capacity as the chief promoter of Hindalco in the coal scam.25 percentage points for the second time over a month.000 crore in 20 state-run banks through the preferential share allotment route to meet the credit requirement of productive sectors of the economy and maintain the regulatory capital adequacy ratios in public sector banks. it would be interesting to see whether a totally extraneous development can derail the bid of one of India’s most admired groups. provided they incorporate themselves under Indian laws. Consequently. foreign or Indian. Another development that clouds the picture is the settlement one of the biggest global banks JP Morgan Chase reached with authorities in the U. Amidst the riveting interest on the subject. Five years on.14. But then normalcy was yet to be restored. It is the last point that has created some confusion. Birla group. A very large number of respondents to RBI’s discussion paper were not in favour of awarding licences to big business houses. This was in regard to the government’s decision on injecting Rs. The banks should have a minimum capital of Rs. their governments must follow the principle of reciprocity. allowing large industrial houses to start a bank has been the most contentious. A few large industrial houses will be given permission to start banks. FMC is entrusted with the responsibility and power of supervising and regulating even the e-series contracts.e. RBI has reduced the Marginal Standing Facility (MSF) rate from 9 to 8.RaghuramRajan has said that foreign banks will be allowed in India. to earn a reprieve from civil prosecution though not criminal cases. two related developments merit attention. The bank agreed to pay a record $13 billion to federal and state agencies in settlement of cases relating to its role in the sub-prime home loan crisis of 2008 which morphed into a global economic crisis. though the RBI is comfortable with the current exchange rate of the rupee. financial settlement or physical delivery till the forensic audit was received. NSEL members owe over Rs. it is not the quantifiable target as much as the subjective criteria that will pose daunting challenges. had brought some calm to the foreign exchange market. (NSEL). will be disqualified. Yet. The Bombay High Court was hearing the petitions filed about the e-series of NSEL. Equally importantly. whether the A. has said that. the recent government decision to inject Rs.75 per cent. such policy issues have been decided.75% from 7.500 crore and sound credentials &financial track record of 10 years. Further. Role for foreign banks Dr. meaning that they must allow Indian banks to open branches there. Concurrently.. However. Nor has any bank. narrowing of the trade deficit. The audit was to be conducted by an independent body. The court stated that NSEL would be allowed to operate the frozen accounts to finance the audit only if the amount in the operational accounts was not sufficient to fund it. and also bring down the cost of funds for banks. been guilty of alleged acts of misdemeanor of gargantuan proportion. regulators are sending out a tough message after being accused of going soft on banks initially. There being no precedent. drawn from the public and private sectors. has led to speculation.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .500 crore to thousands of investors who have filed cases with the EOW of Mumbai Police following the default. which is hovering around 61-62 per dollar.com
Page 71
. V. along with the central bank’s (RBI) decision to increase the short-term 7 and 14-day borrowing limits for banks. coupled with policy interventions. one of the top eligible contenders for a bank licence. the policy repo rate (i. the U. There is no hint of such a radical move in a policy paper that RBI has put up on its website. This.2013 Stringent norms: The applicants.14.5. There may not be banks of the size of JP Morgan Chase in India. these banks will be allowed to buy a few local banks.

Regional rural banks (RRBs) and co-operative banks are advised to utilise the at-par cheque facility only for their own use and payment of cash should not exceed Rs. Courtesy – Hindu Newspaper
What is MSF? Marginal Standing Facility is the rate at which banks borrow funds overnight from the RBI. RBI has asked banks not to pay more than Rs. the last mainstay of the regulated interest-rate regime.000. SMS alerts on Usage Basis: RBI has asked banks to charge customers for transaction SMS alerts on the basis of usage. Such WOSs would be treated on a par with domestic banks.000 in cash to customers holding at-par cheques.1 lakh. However. the RBI had decided to give freedom to commercial banks to fix savings bank deposit rates. banks are required to pay interest on savings and term deposits at quarterly or longer intervals. In March 2011. IINSS will be linked to the new (combined) Consumer Price Index (CPI). These banks are open to the idea of local incorporation provided they get a levelplaying field with local banks and a waiver on stamp duty. 2013.50. which was set-up to scrutinise applications for new bank licences. and firms controlled by Anil Ambani and Kumar Mangalam Birla. it is as high as 7%. including Tata Sons. trusts and charitable institutions) Banks can pay interest at shorter intervals Savings bank account and term deposit holders can now earn interest at shorter intervals (compared to the present ‘quarterly intervals’). with the RBI allowing banks to revise the periodicity of interest payments. The MSF is usually pegged at 100bps or some percent above the repo rate. The interest on these securities would comprise a fixed rate plus inflation. On higher amounts. Only Rs. Inflation-linked 10-year savings scheme RBI on consultation with the government plans to launch a 10-year savings instrument.50. the RBI had set guidelines for banks to send online alerts to customers for all types of transactions.‘Inflation-Indexed National Saving Securities (IINSSs) for retail investors’ that will offer inflation-linked returns to small investors as an alternative to investing in gold. 2010) to convert into WOSs. Banks can borrow funds through MSF when there is a liquidity crunch. The RBI is working to persuade large foreign banks with 30 or more branches in India to get incorporated locally. The initial minimum paid-up voting equity capital or net worth for a WOS shall be Rs.50. Among public sector units. While giving banks this freedom. Expert group meeting on new bank licences Former RBI Governor Bimal Jalan-led high-level panel. These securities will be distributed through banks to reach out to the masses( Eligible investors : individuals. they will be incentivised to convert into WOSs by the attractiveness of the near-national treatment afforded to WOSs. At present.2013 To mitigate the risk of money laundering and terror funding. including in the matter of opening branches. While it will not be mandatory for existing foreign banks (that is.000 or more should be strictly by debit to the customer’s account.500 crore. There are 26 applicants for new bank licences. the central bank had not issued rules on charging customers for these alerts. All transactions of Rs. banks are allowed to offer differential rates to depositors. Interest would be compounded half-yearly and paid cumulatively at redemption. the RBI had said a uniform rate will have to be offered on deposits of up to Rs.The interest rate on savings bank accounts is calculated on a daily basis. irrespective of the amount. Guidelines on foreign banks coming The Reserve Bank will soon come out with comprehensive guidelines on foreign banks to encourage them to convert into wholly-owned subsidiaries (WOSs) and enjoy near-national treatment. banks set up before August. This measure has been introduced by RBI to regulate short-term asset liability mismatches more effectively RBI’s Second Quarter Review of Monetary Policy 2013-14 Following were the outcomes of the RBI’s Second Quarter Review of Monetary Policy 2013-14.com
Page 72
. instead of imposing a fixed fee.50. In 2011. Term deposit rates are 8-9 % for tenures of one year and above. The savings deposit rate for most banks is 4 % per annum.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . to ensure equity and to be reasonable. while in some cases. will hold its first meeting on 1st November. Hindu Undivided Families. the India Post and IFCI have submitted applications.000 in cash for at-par cheques http://insightsonindia.

surveillance dragnet.The award acknowledges the incredible strength of Malala at the very young age.K. In 2010 it was conferred on the WikiLeaks and its founder. won the EU’s prestigious Sakharov human rights prize (worth $65. is the Director General of OPCW Courtesy – OPCW website Bimal Roy award Filmmaker Shivendra Singh Dungarpur has been selected for this year’s (2013) Bimal Roy Memorial Emerging Talent Award for his widely appreciated documentary Celluloid Man. the Nobel Peace prize has over the years attracted criticism as politically driven. Nobel for Chemical arms watchdog The Organisation for the Prohibition of Chemical Weapons (OPCW) has been awarded Nobel Peace prize for its efforts in “eliminating chemical weapons” in Syria. OPCW has 189 Member States. Sabiha Sumer. The Bimal Roy Memorial Society has been conferring this award since 1997. This year the favourite was Malala Yousufzai.
2. 100 individuals and 25 organisations. legendary film archivist and founder of the National Film Archive of India. Lyudmila Alexeyeva.2013 MISCELLANEOUS AWARDS Malala awarded Sakharov prize Pakistan’s Malala Yousafzai (16 years old). Past recipients include Rituparno Ghosh. Svetlana Gannushkina and Lilya Shibanova.000). It honours emerging talents from the Indian film industry. but also for its courage and determination shown in the dangerous war zone. At present. OPCW has not only gained credibility for its role in enforcing the peace option in Syria through its technical expertise.
3.A. and Vikramaditya Motwane. The Nobel Peace Prize has been awarded 94 times to 125 Nobel Laureates between 1901 and 2013. Julian Assange.S. Swaminathan will be conferred the Indira Gandhi Award for National Integration. Adams. explores the life and work of P. A few states have not observed the deadline. CIA whistleblower award for Snowden Former CIA analyst Edward Snowden was given an American whistleblowers’ award for exposing massive U. the 16-year-old education and peace campaigner from Pakistan who despite being grievously injured by the Taliban for her outspoken advocacy of education for girls. which entered into force in 1997. They share the collective goal of preventing chemistry from ever again being used for warfare. M. The Convention contains four key provisions: destroying all existing chemical weapons under international verification by the OPCW monitoring chemical industry to prevent new weapons from re-emerging providing assistance and protection to States Parties against chemical threats fostering international cooperation to strengthen implementation of the Convention and promote the peaceful use of chemistry.
4. The Sam Adams Award “for Integrity in Intelligence” The award is named after Samuel A. The Nobel Committee keeps the nomination list secret for 50 years. Leymah Gbowee and Tawakkol Karman for their work on women’s rights. continues to spread her message around the world. by conferring the award on the OPCW it was upholding Alfred Nobel’s vision of disarmament. have underlined need to enhance the efforts to do away with such weapons. The Organisation for the Prohibition of Chemical Weapons is the implementing body of the Chemical Weapons Convention (CWC). a C.com
Page 73
. Shoojit Sircar. Celluloid Man. This is especially in reference to the USA and Russia. the teenage activist nominated for this year’s Nobel Peace Prize. who are working together to achieve a world free from chemical weapons. where chemical weapons have again been put to use. for destroying their chemical weapons.S.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER .
http://insightsonindia. Ashutosh Gowarikar. Its choice of the Chinese dissident Liu Xiaobao in 2010 and Barack Obama in 2009 are cited as examples of its pro-West tilt. whistleblower during the Vietnam War and is given annually. But despite its claims of being independent. Recent events in Syria. the first woman Attorney-General in Guatemala and a human rights campaigner and others were all on the nomination list. Criticism over the Nobel Peace Prize According to the Nobel Committee. Eleanor Catton wins Man Booker prize civil war. which was April 2012. Mr Ahmet Uzumcu. who had treated thousands of women who faced rape and torture during the 1. in 2011 it was won by Ellen Johnson Sirleaf. Last year (2012) the prize was won by the European Union. Swaminathan to get Indira award More about OPCW: Eminent agriculture scientist M. thereby strengthening international security. a documentary made in 2012.S. Denis Mukwege.I. Claudia Paz y Paz. Russian human rights activists. The other strong contenders were the courageous doctor from the Democratic Republic of Congo. The film won two awards best historical/biographical reconstruction and best editing for Irene Dhar Malik at the 60th National Film Awards. Nair.

Ireland or Zimbabwe. and five radio plays. The Lowland by Jhumpa Lahiri was also one of the strong contenders for this year’s prize. TIT-BITS Malala inspires curriculum for schools and colleges Malala Yousafzai. the Padma Bhushan in 2005 and the Dadasaheb Phalke Award in 2007.the Pakistani girl targeted by Taliban because she championed education for girls. In a career that spanned 70 years. PERSONALITIES Jnanpith winner Ravuri dead Ravuri Bharadhwaja.One such example is given above. This change will take place from the year 2014. Turtles like the Olive Ridley. formally launched its first branch in the country. literary luminary and Jnanpith awardee. Kannur to be first zero landless district The Kannur district in Kerala would be declared as the first zero landless district in the country. the 28-year old author from New Zealand has won the Man Booker prize 2013 for her novel. into the wild next year. leatherback turtles. a subsidiary of Southeast Asia’s fourth largest bank Maybank. with astrology a running theme through the book.INSIGHTS CURRENT EVENTS ANALYSIS OCTOBER . four play-lets.com
Page 74
. Critically endangered turtles to be released in Sunderbans The Sunderban Tiger Reserve will introduce the Batagur basa. Free of charge. Yousafzai. Human Rights activist. has inspired the development of a school curriculum. Also refer Orient BlackSwan Atlas (pg no. The multimedia tools won’t just look at Malala’s story. whose legendary voice entertained many generations. a rare species of riverine turtle that has been declared critically endangered by the International Union for the Conservation of Nature (2014). (From the prelims point of view. The popular writer is credited with penning 37 collections of short stories. Legendary playback singer Manna Dey dead Playback singer Manna Dey. He was 94 years old. Recently. He was recipient of the prestigious awards Padma Shri in 1971. The Luminaries. nuggets. 35)
What is Man-Booker prize? Why is it awarded? Man Booker prize is a literary prize awarded each year for the best original ‘English’ novel written by a citizen of Common wealth of Nations. The Sunderbans is a repository of biodiversity and along with 60 species of reptiles. coins and bars ceaselessly shifts its shapes around them. 17 novels. He contributed more to children’s literature. about a dozen species of turtles are also found in the deltas. authors across the world will be considered. the curriculum will focus on themes such as the importance of a woman’s voice and political extremism. George Washington University has announced that it is creating multimedia curriculum tools to accompany I am Malala. Men and women proceed according to their fixed fates. Captive breeding for the turtle started in the Sajnekhali Wildlife Sanctuary in the tiger reserve from 2012.be aware of the critically endangered and endangered species and their location in India . while gold — as flakes.2013 Eleanor Catton. as long as their work is in English and published in the UK. She has set 2 records by winning this prestigious award – Ms Catton became the youngest novelist to win the Man Booker prize and also this is the longest winning novel (The Luminaries is 852 pages).500 songs in 16 different languages. is no more.is dead. green turtles and hawksbill turtle are found in the archipelago. First Indonesian bank branch Bank Internasional Indonesia (BII). but also on how
http://insightsonindia. he sang more than 3. The Luminaries is a murder mystery set in New Zealand during the gold-rush of the late 19th century. the same issues have been reflected elsewhere. such as when girls face child marriage and pressures to leave school. a book recently released by Ms. there were certain reforms made according to which.